Chicago Attorneys Litigate Equitable Remedies in Entity Control Disputes
Protecting ownership rights and preventing unjust enrichment
When stakeholders in a business vie for control of the entity, the court most likely recognizes that an order to pay monetary damages is inappropriate and that the case requires an extraordinary remedy to produce a fair outcome. At Schwartz & Kanyock, LLC, our business attorneys have extensive experience in entity control litigation and have successfully petitioned state and federal courts for equitable relief. By securing court orders, compelling a party to take action or to refrain from acting to injure our client, we’ve been able to prevent unjust losses to our clients and the unjust enrichment of unscrupulous schemers. Our attorneys, with more than 50 years of business litigation experience, have the knowledge of law and procedure necessary to secure fair outcomes.
Prosecuting lawsuits for an equitable accounting
One reason for entity control litigation is to address a breach of fiduciary duty by the officer of a company. However, it’s difficult, if not impossible, to prove a breach without a thorough accounting that demonstrates careless mismanagement or criminal misallocation of funds. In such cases, Schwartz & Kanyock, LLC aggressively pursue orders for a thorough accounting of the company’s assets.
Urging the court to appoint a receiver
During entity control litigation, a defendant may act to cover up mismanagement or fraudulently transfer assets while he still has a chance. We take prudent and decisive steps to convince the court it must appoint a receiver to:
- Run the company efficiently to maximize the value of assets
- Sell the company in part or in whole, and close unprofitable divisions
- Secure company assets
- Resolve outstanding debts
Proposing constructive trusts to prevent unjust enrichment
A constructive trust is a legal fiction the court creates to take property from a person who came into possession by accident, misunderstanding or dishonesty. By declaring a constructive trust, the court orders the possessor to transfer property to its rightful owner. The court should only authorize a constructive trust when the party in possession has committed a tort (legal injury) against the party claiming to be the rightful owner. As experienced equitable remedy litigators, we fully understand what is necessary to prove or to disprove a business tort.
Reading an owner’s intent to imply a resulting trust
In some entity control cases, the pertinent question is whether an officer has ownership authority or is acting on the authority of another. The court may conclude that the circumstances by which the officer acquired authority imply a trust; the officer is acting as a fiduciary for the true owner. The officer must therefore honor the intentions of the true owner, and can be enjoined from acting at variance with the true owner’s intentions.
To resolve your entity control dispute with an equitable remedy, call Schwartz & Kanyock, LLC
Schwartz & Kanyock, LLC secures equitable remedies for commercial clients in equity control litigation throughout the Chicago metropolitan area. We also serve as co-counsel for cases throughout the United States and as local counsel for firms outside Illinois. Call 312-436-1442 today or contact the firm online to schedule your initial consultation.