Enforcement of Non-Competes
201609.12
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Enforcement of Non-Competes

It is well established that non-compete agreements in employment contracts are enforceable if they meant the requirements of MCL 445.774a of the Michigan Antitrust Reform Act (“MARA”).  But what about non-compete agreements that do not arise in the employment context?  In Brillart v. Danneffel, 36 Mich. App. 359 (1971), the Court of Appeals ruled that…

Lender or Partner?
201607.26
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Lender or Partner?

Suppose that your client comes to you and says that he started a business and received funds from another person. Your client thinks that the other person simply made a loan to the business. The other person thinks that the funds are a capital contribution to a partnership, which made him a partner in the…

The Tax Man Cometh: Strategies For Retiring Debt
201602.26
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The Tax Man Cometh: Strategies For Retiring Debt

As litigators, we often represent clients being pursued by creditors (banks, private lenders, bankruptcy trustees, etc.) seeking payment on loans or indebtedness. A strategy employed by many lawyers is to simply negotiate a discount on the indebtedness in exchange for immediate payment, with the remainder of the debt being “written off” by the creditor. If…

Friction or Non-Friction? How to Handle Business Partner Disputes and Other Conflicts
201509.22
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Friction or Non-Friction? How to Handle Business Partner Disputes and Other Conflicts

While business is flourishing across resurgent metro markets nationwide, change invariably brings with it a certain degree of turmoil. From minor growing pains to more profound professional conflicts, some companies are more equipped to handle success, and challenges, than others. When it comes to setting up business partnerships or handling business partner disputes, it is…

Let’s Continue Discussing the Michigan Uniform Fraudulent Transfer Act
201502.17
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Let’s Continue Discussing the Michigan Uniform Fraudulent Transfer Act

Last month, we started discussing a scenario involving a plaintiff with a judgment against the now defunct Darn Debtor, Inc. (“Debtor”). The judgment debtor’s majority shareholder, Ina Insider (“Insider”), received cash and equipment from Debtor when it liquidated its assets. The plaintiff has decided to bring a claim against Insider under MCL 566.35(2) of the…

The Michigan Uniform Fraudulent Transfer Act
201412.17
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The Michigan Uniform Fraudulent Transfer Act

So you have finally triumphed after a long legal battle and obtained a judgment in favor of your client against the defendant Darn Debtor, Inc. (“Debtor”). However, no sooner do you have your judgment then the defendant’s counsel informs you that their client is judgment proof and won’t even bother with an appeal. What is…

Do New Rules for Shareholder Oppression Claims Apply to LLCs?
201410.08
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Do New Rules for Shareholder Oppression Claims Apply to LLCs?

Last month, we discussed the Michigan Supreme Court’s decision in Madugula v. Taub, 2014 Mich. LEXIS 1281 (July 15, 2014), in which the Court held that shareholder oppression claims, including those seeking damages, can only be tried before judges sitting as courts of equity. This month, we focus on one of the strategic implications of that…

The Irreparable Harm Element for Injunctive Relief
201406.03
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The Irreparable Harm Element for Injunctive Relief

When attorneys stride into court to argue the merits of a request for a preliminary injunction, they are usually focused on arguing the merits of the plaintiff’s claims. Convincing the judge that the plaintiff either does or does not have a likelihood of succeeding on the merits is obviously important. However, frequently the main battleground…

How to Turn the Table on Privilege Claims in Fraud Cases
201402.14
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How to Turn the Table on Privilege Claims in Fraud Cases

Few accusations raise the hackles of clients more than claims that they defrauded someone.  Understandably, the client accused of fraud wants his or her attorney to prove that he or she was honest and forthright in the parties’ dealings.  When you win a summary disposition motion dismissing a fraud claim, you will certainly have one…

Legal Malpractice Actions Now Subject to Six-Year Statute of Repose
201304.24
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Legal Malpractice Actions Now Subject to Six-Year Statute of Repose

On January 2, 2013, the Michigan Legislature enacted new legislation that can have the effect of “trumping” the previous six-month discovery rule applicable to attorney malpractice claims. Previously, legal malpractice claims were subject to a two-year statute of limitations (two years from the last date of service performed by the attorney), with a six-month “discovery…