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.
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
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!
