Shareholder Disputes & Governance

Business disputes among partners, shareholders, managers, or others (particularly in closely held companies), can be life-altering for key stakeholders, and can preserve or destroy a business.

An equity interest in a private business is often an owner’s primary financial asset, and the resolution of an ownership dispute may significantly affect the owner’s financial future. Sometimes ownership and control are themselves on the table—with parties at risk of losing the benefit of their long term personal and professional contributions to the business that they helped build.

A Competitive Advantage

Many law firms treat these disputes as strictly litigation matters. At Tonkon Torp, we take a more holistic approach. Depending on the facts at issue, our business lawyers may lead a team committed to resolving the problem, with litigation used as one of many tools available to achieve a positive outcome. The ultimate resolution of a shareholder dispute often involves a business transaction. When they can add value to the project team, we will bring in a tax lawyer, a corporate expert, a commercial contract lawyer, a mergers and acquisitions professional, or other lawyers in our business department to develop the best structure to resolve a dispute. The structure of our firm lends itself to seamless team collaboration because our practice is integrated across departments and practice groups. We have long understood that an interdisciplinary approach better meets our clients’ goals, putting our attorneys in a better position to resolve disputes among business owners efficiently and successfully. Recent examples of our successful approach include matters in which:

  • We assisted the minority owners of a professional services business in taking control of the company from the majority owner in arbitration by bringing Oregon statutory claims while negotiating contract and valuation issues.
  • We simultaneously favorably resolved IRS and foreclosure issues for family shareholders in the middle of a multi-year business sale dispute. We then obtained a multi-million dollar settlement for our clients – impossible to achieve without primary contributions by our litigation, tax, M&A transaction, and real estate lawyers.
  • We worked with the former President of a private-equity backed business services company to negotiate equity valuation procedures, and manage and present an equity valuation conclusion, resulting in an increase in his equity valuation redemption payout from $0, as proposed by the controlling owner, to over $8 million. This outcome was achieved through substantial reliance on our corporate finance expertise.
  • We supported the founder and minority owner of a local, closely held technology company in a contested valuation and buyout proceeding resulting in an increase in her equity redemption payment of more than $1.5 million, a result substantially dependent on the corporate and corporate finance expertise of the business attorneys on our client team.
  • We assisted the majority partners in a local professional services firm in negotiating their withdrawal from their partnership and establishing their own leading practice with their long-time clients.
  • We protected the majority owners of a manufacturing company from a minority shareholder who refused to redeem minority shares under a shareholder agreement, resulting in an award to our clients of specific performance, a new share valuation, and significant attorney fees.
  • We helped a majority member of an LLC wrest back control of a large recycling outfit after a minority member took illegitimate steps to lock the majority member out of the business. We helped by finalizing an unfinished business transaction and cleaning up corporate record-keeping prior to arbitration.
  • We assisted a company in redeeming its former CEO’s shares after a dispute over valuation by leveraging Oregon’s dissenters’ rights statutes and petitioning the court for a judicial appraisal, resulting in a reasonable parting of ways.
  • We leveraged a cash-out merger, coupled with breach of fiduciary duties claims, to motivate a former chief executive officer and minority shareholder of a closely held technology company to surrender his ownership interest in exchange for a release of claims and small redemption payment.
  • We provided counsel to the board of directors of a closely held business that enabled it to preserve its business operations and continue to grow in the midst of a dispute among the shareholders of the business.
  • In a case involving Delaware, Florida, and Oregon law, we assisted a minority owner of a highly-successful startup in securing a substantial, favorable settlement after the majority owners attempted to freeze him out of the benefits of a merger.

Maximized value

Collaboration isn’t just about achieving favorable financial settlements – it can also decrease the length and cost of the dispute. Adding appropriate business, corporate and financial knowledge to a dispute brings a different perspective, which can lead to creative solutions not considered in pure litigation. Our approach often saves our clients time and money, and may also reduce conflict and preserve relationships. We are cognizant of how costly contesting a business breakup or other ownership dispute can be. We work with our clients to provide options that allow them to pursue their best course of action, without being controlled by immediate cost. These options may include a modified or contingent fee structure aligned to the detail of a client’s dispute and available resources, with full payment made upon an equity purchase or other liquidity event.

Alternatives to litigation

Our team approach to business breakups can also result in less litigation. Business breakups can be emotionally charged, which often adds motivation for the parties to have their day in court. While we support courtroom solutions when needed, we begin our work with an astute interpretation of the situation, employing the collective knowledge of our blended litigation/business legal team to assess and recommend all available alternatives. We do not treat lengthy, expensive, and uncertain litigation as the de facto course of action.

Client-focused solutions

For a client involved in a business breakup, our blended teams keep one overarching goal in mind—what are the most efficient means to achieve the client’s goals? More than anything else, this approach keeps our work streamlined and keeps the focus on the client and their legal and business options during a critical period in their business lives.

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3491, 3559
Partner
Adam
Adkin
503.802.2187
adam.adkin@tonkon.com
Partner
Rachel
Atchison
503.802.5732
rachel.atchison@tonkon.com
Associate
Yalda
Bahramian
503.802.5755
yalda.bahramian@tonkon.com
Associate
Paul
Balmer
503.802.5745
paul.balmer@tonkon.com
Of Counsel
Maureen
Bayer
503.802.2115
maureen.bayer@tonkon.com
Partner
Lauren
Bernton
503.802.2144
lauren.bernton@tonkon.com
Partner
Owen
Blank
503.802.2011
owen.blank@tonkon.com
3499, 3523, 18421
Partner
Ryan
Bledsoe
503.802.2120
ryan.bledsoe@tonkon.com
Partner
Jeff
Bradford
503.802.5724
jeff.bradford@tonkon.com
3505
Partner
Kristin
Bremer Moore
503.802.2154
kristin.bremer@tonkon.com
3561
Partner
Claire
Brown
503.802.5731
claire.brown@tonkon.com
Partner
Bob
Carey
503.802.2032
bob.carey@tonkon.com
Estate Planning Paralegal
AnDee
Compton
503.802.2183
andee.compton@tonkon.com
3423, 3537
Partner
Paul
Conable
503.802.2188
paul.conable@tonkon.com
Associate
Sadie
Concepción
503.802.5773
sadie.concepcion@tonkon.com
3493
Partner
Timothy
Conway
503.802.2027
tim.conway@tonkon.com
Partner
Sherrill
Corbett
503.802.2049
sherrill.corbett@tonkon.com
Associate
Timothy
Costello
503.802.2193
timothy.costello@tonkon.com
Associate
Ryan
Costello
503.802.2026
ryan.costello@tonkon.com
Partner
Clay
Creps
503.802.2059
clay.creps@tonkon.com
3501, 3495, 3574, 3491, 3559
Partner
Jeffrey
Cronn
503.802.2048
jeff.cronn@tonkon.com
Partner
Rocky
Dallum
503.802.2175
rocky.dallum@tonkon.com
Associate
Sam
DeBaltzo
503.802.5772
sam.debaltzo@tonkon.com
Partner
Justin
Denton
503.802.2117
justin.denton@tonkon.com
Immigration Paralegal
Mary
Dynowski
503.802.5701
mary.dynowski@tonkon.com
Immigration Paralegal
Kristen
Erán
503.802.2108
kristen.eran@tonkon.com
3531
Partner
Christopher
Erickson
503.802.2177
chris.erickson@tonkon.com
Associate
Rosalie
Fatta
503.802.2031
rosalie.fatta@tonkon.com
Bankruptcy Paralegal
Spencer
Fisher
503.802.2167
spencer.fisher@tonkon.com
Partner
Michael
Fletcher
503.802.2169
michael.fletcher@tonkon.com
Partner
David
Forman
503.802.2023
david.forman@tonkon.com
3543
Partner
Will
Gent
503.802.5767
will.gent@tonkon.com
Litigation Paralegal
Elizabeth
Goodman
503.802.2103
elizabeth.goodman@tonkon.com
Partner
Stephanie
Grant
503.802.5736
stephanie.grant@tonkon.com
Of Counsel
Kyle
Grant
503.802.2092
kyle.grant@tonkon.com
Partner
Ronald
Greenman
503.802.2006
ron.greenman@tonkon.com
Immigration Paralegal
Gayle
Griffin
503.802.2099
gayle.griffin@tonkon.com
3567
Partner
Gwendolyn
Griffith
503.802.2102
gwen.griffith@tonkon.com
Associate
Mia
Gutierrez
503.802.2091
mia.gutierrez@tonkon.com
3529
Partner
Drew
Hagedorn
503.802.5757
drew.hagedorn@tonkon.com
Of Counsel
Charles
Harrell
503.802.2038
charles.harrell@tonkon.com
Associate
Mick
Harris
503.802.5765
mick.harris@tonkon.com
3535, 3545, 3547
Partner
Caroline
Harris Crowne
503.802.2056
caroline.harris.crowne@tonkon.com
Paralegal
Leisa
Harvard
503.802.5730
leisa.harvard@tonkon.com
Associate
Matt
Heldt
503.802.2135
matt.heldt@tonkon.com
3447
Partner
Ted
Herzog
503.802.2033
ted.herzog@tonkon.com
Estate Planning Paralegal
Karri
Herzog
503.802-2086
karri.herzog@tonkon.com
3521, 18421
Partner
Karen
Hobson
503.802.2136
karen.hobson@tonkon.com
Business Paralegal
Samantha
Holly
503.802.2118
sam.holly@tonkon.com
Of Counsel
Jarell
Hunt
503.802.5776
jarell.hunt@tonkon.com
Associate
Josie
Jeremiah
503.802.2146
josie.jeremiah@tonkon.com
Associate
Jordan
Jeter
503.802.2076
jordan.jeter@tonkon.com
Associate
Samantha
Klausen
503.802.2124
samantha.klausen@tonkon.com
Partner
Blerina
Kotori
503.802.2055
blerina.kotori@tonkon.com
Paralegal
Jennifer
LaBonte
503.802.2071
jennifer.labonte@tonkon.com
Partner
Melina
LaMorticella
503.802.2122
melina.lamorticella@tonkon.com
Partner
Mark
LeRoux
503.802.2022
mark.leroux@tonkon.com
Associate
Eric
Levine
503.802.2072
eric.levine@tonkon.com
Business & Real Estate Paralegal
Laura
Lindberg
503.802.2128
laura.lindberg@tonkon.com
3572
Of Counsel
Maureen
McGee
503.802.5726
maureen.mcgee@tonkon.com
3503, 3531
Partner
Parna
Mehrbani
503.802.2170
parna.mehrbani@tonkon.com
3497
Partner
Brenda
Meltebeke
503.802.2088
brenda.meltebeke@tonkon.com
Partner
Michael
Millender
503.802.2164
michael.millender@tonkon.com
Of Counsel
Max
Miller Jr.
503.802.2030
max.miller@tonkon.com
Partner
Christopher
Morehead
503.802.2035
christopher.morehead@tonkon.com
3569
Partner
Jessica
Morgan
503.802.2165
jessica.morgan@tonkon.com
Associate
Gracey
Nagle
503.802.5753
gracey.nagle@tonkon.com
Litigation Paralegal
David
Namdar
503.802.2095
david.namdar@tonkon.com
3572
Partner
Danny
Newman
503.802.2089
danny.newman@tonkon.com
Attorney
Steven
Olson
503.802.2159
steven.olson@tonkon.com
Senior Counsel
Turid
Owren
503.802.2045
turid.owren@tonkon.com
3525, 3414, 3499
Partner
Christopher
Pallanch
503.802.2104
christopher.pallanch@tonkon.com
Partner
Thomas
Palmer
503.802.2018
tom.palmer@tonkon.com
Business Paralegal
Allan
Patterson
503.802.2021
allan.patterson@tonkon.com
Intellectual Property Paralegal
Renee
Peck
503.802.2197
renee.peck@tonkon.com
3509
Partner
Alan
Perkins
503.802.2127
alan.perkins@tonkon.com
3513, 3569
Partner
David
Petersen
503.802.2054
david.petersen@tonkon.com
Of Counsel
Sasha
Petrova
503.802.2130
sasha.petrova@tonkon.com
Case Manager Paralegal
Ellen
Previdelli
503.802.2171
ellen.previdelli@tonkon.com
Business Paralegal
Laney
Quigley
503.802.2017
laney.quigley@tonkon.com
Associate
Sowmiya
Raju
503.802.2057
sowmiya.raju@tonkon.com
Partner
Megan
Reuther
503.802.2174
megan.reuther@tonkon.com
Case Manager Paralegal
Erika
Robles
503.802.2097
erika.robles@tonkon.com
3521
Partner
John
Rosenfeld
503.802.2010
john.rosenfeld@tonkon.com
Associate
Kate
Roth
503.802.2189
kate.roth@tonkon.com
3462
Partner
Ferdinand
Ruplin
503.802.2029
ferdie.ruplin@tonkon.com
Managing Partner
Kurt
Ruttum
503.802.2043
kurt.ruttum@tonkon.com
Partner
Melany
Savitt
503.802.2179
melany.savitt@tonkon.com
Associate
Zack
Schick
503.802.2065
zack.schick@tonkon.com
Partner
Drea
Schmidt
503.802.5703
drea.schmidt@tonkon.com
Partner
Ava
Schoen
503.802.2143
ava.schoen@tonkon.com
3515
Partner
Jeanette
Schuster
503.802.2114
jeanette.schuster@tonkon.com
3423, 3553
Partner
Dan
Skerritt
503.802.2024
dan.skerritt@tonkon.com
Partner
Josh
Smith
503.802.2191
josh.smith@tonkon.com
Intellectual Property Paralegal
Anthony
Smith
503.802.2157
anthony.smith@tonkon.com
3574, 3555
Partner
Anna
Sortun
503.802.2107
anna.sortun@tonkon.com
3563
Partner
Kimberlee
Stafford
503.802.2062
kimberlee.stafford@tonkon.com
Of Counsel
Darian
Stanford
503.802.2028
darian.stanford@tonkon.com
Litigation Paralegal
Larissa
Stec
503.802.2148
larissa.stec@tonkon.com
Partner
Jon
Stride
503.802.2034
jon.stride@tonkon.com

Tonkon Torp Helps Malarkey Roofing Company Construct a Billion-Plus Sale Strategy

Tonkon Torp guided client Herbert Malarkey Roofing Company through a successful $1.35 billion stock sale to Switzerland-based Holcim Group, one of the world’s largest building products companies. The deal secured a place as one of Oregon’s largest M&A transactions in 2021.

Representative Matters

Shareholder & Corporate Disputes

  • Assisted a company in redeeming its former CEO’s shares after a dispute over valuation by leveraging Oregon’s dissenters’ rights statutes and petitioning the court for a judicial appraisal, resulting in a reasonable parting of ways.
  • Following a two-week jury trial in Central Oregon, protected the majority owners of a manufacturing company from a minority shareholder who refused to redeem minority shares under a shareholder agreement, resulting in an award to our clients of specific performance, a new share valuation, and significant attorney fees.
  • Helped a majority member of an LLC wrest back control of a large recycling outfit after a minority member took illegitimate steps to lock the majority member out of the business. We helped by finalizing an unfinished business transaction and cleaning up corporate record-keeping prior to arbitration.

Services + Industries

Services + Industries

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