Celebrating 10 years! 2007-2017

Is it difficult to sue for something that's not liquid?

Can you sue someone for equity in a business? Like restrict darthkircheis03/06/18
I doubt anyone will touch the case on contingency but you ca qdllc03/06/18
Nope. Would you work for tens or hundreds of hours based isthisit03/06/18
No attorney that actually knows what he or she is doing is g pauperesq03/06/18
I think you would be more likely to recover money damages an e36m303/06/18
1. This is not a case a lawyer would take on contingency. jackofspeed03/06/18
IANAL, but isn't it pretty much always the case that everyth wolfman03/06/18
This is what I was thinking. Only in weird specific perform lilgub03/06/18
darthkircheis (Mar 6, 2018 - 1:01 am)

Can you sue someone for equity in a business? Like restricted stock that you can't sell for a period of time, which doesn't have a fixed value.

Would it be easy to convince an attorney to work on a contingency on a lawsuit like that? Would they calculate the fee based on the FMV of the stock on the date of settlement? Or is there no chance in hell?

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qdllc (Mar 6, 2018 - 6:34 am)

I doubt anyone will touch the case on contingency but you can sue for non-liquid assets.

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isthisit (Mar 6, 2018 - 7:16 am)

Nope.

Would you work for tens or hundreds of hours based on the possibility of winning a scratch-off ticket?

You can lose and then all that time amounts to a financial loss for your practice. Or you can win and then the ticket ends up being a loser anyway (worthless company or a stock you can't sell).

This old adage is very salient here: [email protected] you, pay me.

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pauperesq (Mar 6, 2018 - 10:08 am)

No attorney that actually knows what he or she is doing is going to take that on contingency.

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e36m3 (Mar 6, 2018 - 10:17 am)

I think you would be more likely to recover money damages and if you obtain a judgment, you would seek to execute on the restricted stock for commensurate value. I'm not sure there's a mechanism to recover non-monetary damages in a civil case outside of specific contractual disputes.

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jackofspeed (Mar 6, 2018 - 11:04 am)

1. This is not a case a lawyer would take on contingency.

2. There are a number of different things you can do if you have restricted stock (or stock options) and management (or bigger stockholders) are doing something to injure your interests or impair the value of your stock.

Can you describe what the company is doing wrong?

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wolfman (Mar 6, 2018 - 11:15 am)

IANAL, but isn't it pretty much always the case that everything gets reduced to money damages? So if the co. is doing something wrong with your non-liquid stock or whatnot, and you can prove it, you just sue for money damages and (hopefully) settle or win? I mean, I assume jackofspeed is right - no one would take it on contingency - but that's because it's an uncertain case, not just simply because it concerns non-liquid stuff? To give an extreme example, that Sevrino's (sp? - Brazilian Harvard guy) interest in Facebook was pretty non-lliquid when he was forced out, but he sued Zuckster and got a huge settlement in the end (though I think he had money for lawyers)?

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lilgub (Mar 6, 2018 - 12:39 pm)

This is what I was thinking. Only in weird specific performance cases do you really get (or want) non-money damages. I guess you could argue to the judge that you want "half the business" or whatever, but even then either a) one party pays the other one off for the value or b) the business is sold and both parties get cash.

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