1361 E. Big Beaver Road
Troy, MI 48083
(248) 457-9200
Fall 2020 Business Law Newsletter
Shareholder Oppressor Pays $11.25 Million Settlement
In a family business dispute, a controlling shareholder and director paid himself millions in stock redemptions on terms not offered to the minority shareholder. The controlling shareholder also refused to declare dividends for several years, even though the company had the ability to pay dividends. Gerard Mantese, Doug Toering and Ian Williamson obtained $11.25 Million for their client in a confidential mediation, reported in Michigan Lawyers Weekly (Vol 34, #46, September 14, 2020). This case highlights the fiduciary duties that directors and those in control owe to minority shareholders.

Making History With Deal To Provide Mental Health Care To Children
Dave Honigman, Gerard Mantese and Theresamarie Mantese are part of a team representing a putative class of 80,000 children and teens on Medicaid assistance in a class action alleging systemic deficiencies in the provision of mental health care. 

The plaintiffs recently entered into an historic Interim Agreement with the State of Michigan, whereby the State agreed to make major changes in mental health care. 

In addition, in September of 2020, the Michigan legislature specifically appropriated $19 Million for data collection and studies to determine appropriate remedies.  

Mantese And Williamson Recover
$11.1 Million In LLC Member Fight
Just as with corporations, when those in control of an LLC decide to take financial advantage of the minority members, the law provides a remedy under MCL 450.4515. In a recent case, reported in Michigan Lawyers Weekly (Vol. 34, #43, August 24, 2020), Gerard Mantese and Ian Williamson filed suit against the managers and dominant members of an LLC for oppression and breach of fiduciary duty.

The plaintiff endured several years of receiving no financial benefit from the LLC and its related companies, despite several profitable years. In detailed depositions, Mantese and Williamson elicited testimony about how the defendants viewed the plaintiff (a sibling) with jealousy and contempt.

The defendants basically admitted at depositions that they would never allow the plaintiff to share in the financial benefits of the LLC. The parties mediated and entered into an agreement to redeem the plaintiff’s membership interest in exchange for $11,100,000 in cash and property.

A New Sheriff Comes To Town:
Assistant US Attorney Joins MH
Ken Chadwell, a widely respected Assistant U.S. Attorney, joined Mantese Honigman, PC, after 29 years at the US Attorneys Office in Detroit. Mr. Chadwell's practice focuses on white-collar criminal defense, internal corporate investigations, responding to DOJ investigations, and complex business litigation.

Nicole Lockhart Joins
Mantese Honigman, PC
Nicole Lockhart has joined Mantese Honigman, PC as an associate attorney. Ms. Lockhart will focus her practice on business litigation, shareholder and LLC member disputes, federal criminal defense, and contract disputes.

Get Into Good Trouble!
Gerard Mantese and Ian Williamson composed and recorded "Get Into Good Trouble," in honor of the late U.S. Rep. John Lewis and the fight for justice.
Articles And Seminars
Mantese Honigman, PC continues to publish helpful articles for business attorneys and business people:

Attorney Honors
Gerard Mantese, Douglas Toering, Ian Williamson, Theresamarie Mantese, Terry Osgood and Kathryn Eisenstein were all named 2020 Michigan Super Lawyers.

Gerard Mantese was again included in the list of Top 100 Rated Attorneys in the 2020 Michigan Super Lawyers.

Fatima Bolyea, Jonathan Ajlouny and Emily Fields were all named 2020 Michigan Rising Stars by Super Lawyers.

Kenneth Chadwell was named a Leader in the Law 2020 by Michigan Lawyers Weekly.

Theresamarie Mantese was named in the Top 100 Leading Women Lawyers in Michigan by Leading Lawyers Magazine.
Mantese Honigman Sets the B.A.R.
Brilliance. Action. Results.
Michigan Office
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Phone: 248-457-9200 

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