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.
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 […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
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!
