Cleveland Business & Commercial Law Blog

As a business grows, so does its potential for profits and controversy. Business growth often means there is a need to enlist additional employees, and if the Ohio business is a corporation, it may mean there is a need to expand the company's board of directors. With this increase in both profits and people, there is also the increased possibility for shareholder disputes.

One corporation, Wynn Resorts, has recently found itself at the center of a shareholder dispute. One of its shareholders, a pension fund, had filed suit against the corporation and its former CEO. According to the lawsuit, the former CEO abused and breached his fiduciary duties to the shareholders. Their complaint indicates that his actions resulted in financial loss to the shareholders.

Available funds are a critical part of most Ohio small businesses. Without available funds, the business will be unable to make payroll, purchase needed supplies or deliver the promised product. As the saying goes, "it takes money to make money." This premise is often the catalyst behind many business financing decisions.

Many businesses allow customers to establish accounts. Work is delivered and the customer is invoiced for the work. Typically, these invoices are to be paid within 30 days. While this practice often means an increase in business for the company, it can also mean an increase in funds needed to operate the business. In essence, the business is paying for the manpower and supplies upfront and expecting the customer to pay the invoice at a later date.

An intentional oversight, not sharing the truth or misleading information -- these are all statements that can be used to describe the interactions among some business professionals. In many cases, the damage done is minimal or nonexistent and the matter is never taken into further consideration. However, in other cases, potential damage exists, shareholder disputes become apparent and the business may suffer. Ohio business professionals typically try to avoid the later scenario.

Recently, shareholders of Zillow Group Inc., a real estate marketing company, filed suit against several of the company's directors. Shareholders claim that in a securities filing made in 2017, these directors violated the law and put the company in jeopardy of being charged with securities violations. These shareholders indicate that this filing did not adequately address possible Real Estate Settlement Procedures Act (RESPA) non-compliance issues.

In Ohio and beyond, a disagreement between parties who have signed a contract together can have a ripple effect that negatively impacts others. An example of this can be found in a current situation in another state where contract disputes have threatened approximately 70 elderly residents of an assisted care facility with eviction. Family members of the residents have come forward to express their dire concerns.

The daughter of a 91-year-old resident says she is distraught that her mother will have to move far away from her if administrators of her current residence do not find a solution to their current contract problems. Loved ones of other residents have expressed similar concerns. At issue between the nursing facility and the insurance vendor in question is the residential rate.