Commercial & Contract Disputes

Company disputes can take many forms. Hodge Jones & Allen Solicitors have acted in many kinds of company disputes, including:

• Shareholder disputes

• Director Disputes including claims against directors for breaches of fiduciary duties

• Partnership disputes

• Bringing and defending unfair prejudice petitions

• Fraud

• Contract disputes

• Injunctions

• Regulatory Disputes

Shareholder disputes are disagreements between shareholders in a company or disagreements between the shareholders and company directors. These disagreements usually arise from different opinions about the direction of the company, how the business should be managed or a party acting in breach of the duties owed to the company.

The starting point in any claim is considering the shareholder agreement (if there is one) and looking at what rights are provided by the Articles of Association.

Disputes can include:

• Shareholders disagreeing on how to proceed over a course of action

• Shareholders disagreeing with decisions being taken by the company directors

• Directors acting with a conflict of interest.

Partnership disputes can be disruptive to businesses. Relationships between partners can often become difficult for a variety of reasons and if not handled effectively can threaten the stability of the business.

Partnership disputes fall into two categories:

1. Partnerships operating under a Partnership Agreement; or
2. Partnerships operating without any written agreement which will be governed by the default terms set out in the Partnership Act 1890.

A Partnership Agreement should describe the duties of the partners, and also include a dispute resolution clause.

Partnership Disputes can include the following:

• Breaches of statutory duties

• Breaches of fiduciary duties

• Breaches of the partnership agreement terms.

Fraud is the obtaining of a financial advantage through dishonesty or deceit. It can cover a range of claims where one party uses misrepresentation, deception, dishonesty, bad faith or unconscionable behaviour to obtain an advantage over another party.

Whilst fraud can be prosecuted in the criminal courts, victims of fraud can also pursue civil claims to recover their losses and/or receive compensation.

The standard burden of proof in civil cases is on the balance of probabilities which is much lower than the criminal standard of beyond reasonable doubt.

Civil fraud claim can include:

• Fraud in commercial contracts with banks and financial institutions;

•  Theft, fraud, dishonesty or money laundering in relation to solicitors, accountants, and other professionals who have abused their position;

• Any type of fraud or false misrepresentation in a business, employment or financial context which has resulted in loss to a company or individual;

• Loan, insurance and mortgage fraud.