Business Owner - Deferred Compensation Litigation
1996
Representation of a business owner who sold his company and received over $1 million for his agreement not to compete with the buyer, and deferred compensation. One of the company's creditors sued, claiming the compensation constituted a fraudulent conveyance. The Appellate Division, First Department dismissed the action, ruling that the good will ostensibly belonging to a small business may in fact belong to the owner and not the business, particularly where the customers rely on him, not his employees. (P.A. Building Company v. Elwyn D. Lieberman, Inc., et al., 227 A.D.2d 277, 642 N.Y.S.2d 300 (1st Dept, 1996)) (Prior firm experience)
1996
Representation of a business owner who sold his company and received over $1 million for his agreement not to compete with the buyer, and deferred compensation. One of the company's creditors sued, claiming the compensation constituted a fraudulent conveyance. The Appellate Division, First Department dismissed the action, ruling that the good will ostensibly belonging to a small business may in fact belong to the owner and not the business, particularly where the customers rely on him, not his employees. (P.A. Building Company v. Elwyn D. Lieberman, Inc., et al., 227 A.D.2d 277, 642 N.Y.S.2d 300 (1st Dept, 1996)) (Prior firm experience)
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