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Recent Cases:  November 11, 2016

Chauvel & Glatt, Finding Resolutions to Disputes


Two of our attorneys recently negotiated the resolution of a difficult dispute among four owners of a limited liability company stemming from differences in opinion about how to run the business. This led one of the owners to shut the other three out of the company operations. When the three owners came to our firm, it became apparent that no operating agreement had been signed by the owners and there were other corporate irregularities.

A company receives the benefits of limited liability when it follows all of the requisite corporate formalities in establishing a limited liability company or corporation. This means that the owners have limited personal exposure for the company's debts or other liabilities. However, courts can pierce that corporate veil if the entity is not properly formed, there is undercapitalization, comingling of personal and corporate assets, lack of accounting, or fraudulent business practices.

The lack of an operating agreement was harmful to the owners in our case as there was no written agreement among the members and managers setting forth a process for resolving disputes. Despite difficulties, our attorneys drew upon the CA Corporations Code to negotiate a resolution by which one owner bought out the other three.

Here at Chauvel & Glatt, we understand how limited liability entities operate.  We are experienced in handling situations where co-owners cannot amicably resolve their disagreements or wish to dissolve the company. To learn how our attorneys can help you and your business, contact us today.


This material in this article, provided by Chauvel  & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice.  For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. Photo license:

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I worked for a transportation company at Bakersfield CA that operate with owner operators drivers only.
This company don't pay number of hrs of wait time, every days, If enyone of the drivers question it
Why,? The some of the plant workers make reports , accusing the owner operator falsely with the plant manager. If someone speak up, The owner operator's job end right away by the plant manager.