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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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We put invested additional capital in an s corporation as 50%

Customer Question

We put invested additional capital in an s corporation as 50% shareholders and owners. My husband died and the remaining sole director/account sold the assets and is paying the shareholders including himself and not repaying the additional capital investment that is owed us. Upon my husband's death, this man is the only director and 50% shareholder. He refused to recognize the family as additional capital investors and owes us more than 2M dollars. The corporate attorney is representing the corporation and this man and my family have lost every court motion we attempted. We have proof that we put in additional capital, that he at some time was paying on it. We have been in litigation for almost 2 years and we lose every motion. I believe our attorney may be incompetent. We are so deeply involved in it. It is a mess. We do not know what to do. We have spent more than 70K and we lose every motion and have been sanctioned twice. The defendant's attorney is running rings around us. What do we do? This so called partner in the s corporation refuses to allow us access to accounting. His attorney lies to the judge. You can tell that the judge does not like us. You would think that truth and justice would prevail but not so. We keep urging our attorney to be more aggressive but all she does is respond to the defendant's attacks and we never seem to get to the point. The partner sold the assets, is spending the money to keep the other shareholders/trustees of the family trusts from access to the book and will not pay us as additional investors and instead is calling us shareholders, so the director can continue to be paid for the sale of the assets, both monthly and a balloon payment coming up in 2016. Will a new attorney take the case? Is it too late? We are in a quandry. What do we do? All that money plus two sanctions. What a mess. Bonnie Kent(###) ###-#### California resident.
Submitted: 2 years ago.
Category: Legal
Expert:  CalAttorney2 replied 2 years ago.
I would recommend looking for another attorney to represent you. Litigation can be very frustrating, and it is not unusual for even a very good attorney to have a series of setbacks, but if you are in a case where the attorney is missing multiple deadlines and misplacing documents, that is a good time to start looking for alternative counsel.If you are early enough in the case (2 years is still early in civil litigation), it is probably a good idea to hire successor counsel. You will have to pay a little bit of money for your new attorney to come up to speed on the case, but to avoid future losses due to incompetence is probably well worth it (it isn't a very good legal strategy to allow an incompetent attorney to finish out a case with the plan of suing them for malpractice afterward).Prior to hiring another attorney, make sure you sit down with them and get their overall impression of the case (if someone gives you an overly optimistic view, be careful, even the best cases have weak points, and litigation takes time and costs money, so make sure that you are getting someone that is willing to level with you). You should feel confident with your attorney and comfortable with them (make sure to meet with them in person prior to hiring them).You can find local attorneys using the State and local Bar Association directories, or private directories such as;; or (I personally find to be the most user friendly).