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.
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
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!
