Is it a good idea to mix family and business? In a recent case involving misappropriated funds that Fiffik Law group Partner Matthew Bole handled, it certainly was not.

Attorney Bole represented the majority partner of a Pittsburgh-based real estate business involved in an internal dispute. His client’s business partner – a close family member – collected payments from a tenant and failed to turn it over to the business, instead keeping it for personal gain. This partner had directed the tenant to send payments directly to him rather than go through the proper payment channels within the business.

When the partner still refused to turn over the funds to the business even after being confronted, the majority partner sought the legal counsel of Fiffik Law Group to try and recover the misappropriated funds for their company’s benefit. When it comes to family, money, and business, not all “family matters” can be handled privately.

Attorney Bole filed a lawsuit on the company’s behalf, and the case proceeded to an arbitration hearing, which is a court process designed for swift and efficient resolutions to disputes seeking damages less than $50,000. In the end, Attorney Bole’s client was awarded $14,000, the full amount of misappropriated funds.

Although Attorney Bole represented the majority owner in this case, the law allows any member to bring action on behalf of the LLC, regardless of their majority or minority ownership status.

The attorneys at Fiffik Law Group are experienced in handling the complex challenges that come along with owning and running a business. We assist business owners at every stage of the business journey. If you are facing challenges with your business or have questions about LLC formation or succession planning, contact us today for a free initial consultation.