If it appears that your business partner (or employee, or customer, or supplier or neighbor) wrongfully took money or other property from you, when you seek return of the money or property, be extremely cautious about threatening to file a criminal complaint.
If it appears that your business partner (or employee, or customer, or supplier or neighbor) wrongfully took money or other property from you, when you seek return of the money or property, be extremely cautious about threatening to file a criminal complaint. It could land you on the receiving end of a lawsuit. The following are business dispute resolution tips:
A damage award against you can be significant if it turns out that the accused is innocent. If you communicate the criminal prosecution threat to a third party, and it turns out you were wrong, that is the basis for a damage claim against you for libel and/or slander, depending upon whether your threat was made in writing or orally.
It is also improper to for an attorney to threaten criminal action on your behalf. In one case, Matter of Glavin, 107 A.D. 2d 1006, a New York appellate court found it improper for an attorney to have threatened “to use the criminal process to coerce the adjustment of a private civil claim.” Attorney Glavin was found to have acted improperly even though the Court found that Glavin believed he was justified in sending a letter that said: “You will return the money or else you will go to jail,” “you will be arrested” and “I will have a warrant issued for your arrest.”
The good news is that there are other options to get your money or property back, most notably a demand letter. As the name implies, a demand letter should expressly state the remedy you are seeking, i.e. return of the property within a specified number of days, repayment of funds at a certain interest rate, etc., as well as providing a clear and concise summary of the events that preceded the dispute and justify your claim.
A demand letter serves two important functions. First, it puts recipients “on notice” of your claim and prevents them from later claiming they “didn’t know.” Second, it can often persuade the other party to resolve your claim and avoid a lawsuit.
Most people who misappropriate money or property generally hope that either you don’t notice or you aren’t prepared to take action. While it is important to show them that you mean business, the criminal aspect of the dispute should be left for law enforcement while you pursue your civil remedies.
If you have any questions about this post or would like to discuss resolving your business dispute, please contact me or the Scarinci Hollenbeck attorney with whom you work.
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
