Plachta, Murphy & Associates' Attorneys in the News!

Here at Plachta, Murphy & Associates ("PMA"), we are always striving to provide the best service possible to our valued clients as well as serving our community. Every so often, we get recognized for our efforts and we thought we'd share them with you.

PMA Business Attorney Bryan Reeder Assists in Huge Client Win

PMA's client, the minority member of a hotel business in southwest Michigan, brought suit against the majority ownership faction of the company for corporate oppression and other business torts. PMA alleged that the defendants abused their majority control by freezing our client out of business operations and terminating distributions notwithstanding ample cash reserves.

Prior to filing suit, PMA engaged in due diligence with statutory demands for corporate documents and by noticing and conducting a transcribed member meeting. The defendants’ shortcomings in responding to the demands and failing to appear at the member meeting supported the allegations pled in PMA's complaint.

In prosecuting the case, PMA attorneys structured their proofs according to a seven-step theory of corporate oppression. They focused their testimonial and documentary discovery on proving the core components of the defendants' corporate oppression:

Step 1: Establish majority ownership.
Step 2: Assume sole managerial control.
Step 3: Control books, records, and finances.
Step 4: Undermine and demoralize minority owner.
Step 5: Divert company assets to self or other businesses.
Step 6: Terminate benefits of minority (employment, distributions, etc).
Step 7: Force litigation.

Heading into facilitation, PMA attorneys were trial ready with proofs and demonstratives mapping out the particulars of the case. Evidence gathered in discovery revealed that the defendants acceded to majority ownership without paying for their units; usurped sole managerial control upon a fallacious premise; ran all the books through a related entity’s bookkeeper and accountant and withheld information from the plaintiff; marginalized and repeatedly insulted the plaintiff; funneled corporate monies to their other business; terminated the employment of the plaintiff and his wife without good cause; ended distributions while stockpiling cash and triggering S-corporation tax burdens; and, lastly, refused to pay fair value for the plaintiff’s interest in the company, thus forcing the litigation.

At facilitation, the majority owners agreed to purchase PMA's client's one-third share in the company for $840,000. This amount was nearly three times the buyout offered before the case was filed.

See the full article on Michigan Lawyers Weekly.

PMA Attorneys and Professional Medical Advocates Offer Medical Expertise

The Grand Rapids Business Journal recently highlighted Attorney Brian Plachta and Sharon Depcinski, PMA's Family and Medical Advocates, all part of PMA's unique Elder Law Solutions Team. Our Elder Law Solutions Team helps the legal aspects of planning for a loved one's care as well as connecting our clients with the financial resources and emotional and social support our clients and their family need.

See the full article in the Grand Rapids Business Journal.

PMA Attorney Jeffrey Black Elected As Trustee of Grand Rapids Bar Association

The Grand Rapids Bar Association recently held elections for its officers and trustees. PMA Attorney Jeffrey Black was elected to a three-year term as a Trustee.

See the full article in the Grand Rapids Business Journal.

Do not hesitate to call us at 616-458-3994 or email the experienced staff at PMA for questions or guidance with your legal needs.

Categories: Business Law, Elder Law

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