Shareholder Disputes in closely held corporations are common and often arise from voting deadlocks, financial disagreements, and claims of minority shareholder oppression.
New York law provides several legal remedies, including dissolution proceedings, buyouts, and derivative lawsuits.
Preventative measures, such as well-drafted shareholder agreements, can mitigate future disputes.
A court may immecdiately grant the plaintiff a restraining order or preliminary injunction when there is a valid trade secret claim and the plaintiff may suffer irreparable harm without it.
Courts make the determination whether an injunction is necessary based on the evidence presented by the plaintiff at an initial application at the start of the case.
In a misappropriation of trade secrets lawsuit, one of the first actions taken by the court is to determine if an injunction will be available to protect the trade secret from use or disclosure pending a final resolution of the case.
Whether an injunction will be granted at the outset of the case pendente lite, or while the lawsuit is pending, is a critical must-win for both plaintiff and defendant. It will not only color the way the matter is handled, but in many cases reflects the ultimate outcome of the case.
The Business Divorce Law Report
