Business Startup Goes Sour, Companies Enter Litigation
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, September 27, 2017.
There are many reasons a California business owner might decide to join efforts with other parties to maximize chances for future success. The problem is that if a dispute arises during the business startup phase, it may not only delay plans but impede potential profits as well. In fact, two large companies, Ripple and R3, are currently trying to overcome such problems, both now resorting to litigation as a means of resolving their issues.
Ripple has turned to the California civil justice system, claiming it had forged business startup plans with R3, which failed to honor part of the agreement. R3 has also filed a claim in a chancery court in another state regarding the disagreement, which has to do with an option to purchase XRP, reportedly trading at 21 cents apiece. Ripple says R3 agreed to enter a joint commercial venture centered on a earlier test value of XRP.
Ripple has apparently also taken issue with the fact that several of R3's consortium members are said to be making plans to exit the group. Ripple asserts that those banks were expressly mentioned in the proposed contract between the two ledger networks. The company accuses R3 of misrepresenting its ability and intent to make good on its promises.
An unresolved dispute can make or break an entrepreneurial project. Facing challenges or disagreements in the startup phase is not all that uncommon. The type of action a California business owner takes to solve a particular problem is typically crucial toward the type of outcome obtained. An experienced business and commercial law attorney can be a great asset when trying to determine which dispute resolution option is most viable.