Services | Litigation

How we help

Yohanan Law represents entrepreneurs, startups, founder-led businesses, established companies, investors, and business owners throughout Brooklyn and New York in a wide range of commercial and business disputes. Our litigation practice includes breach of contract claims, partnership and shareholder disputes, business torts, nonpayment disputes, fiduciary duty claims, demand letters, pre-litigation negotiations, and commercial litigation in New York state and federal courts. Whether you are seeking to enforce your rights, defend against a lawsuit, resolve a business dispute, or protect your company's assets, we provide practical legal counsel tailored to the needs of privately held businesses.

Business disputes can disrupt operations, strain relationships, and threaten the long-term success of a company if they are not addressed strategically. Whether the dispute involves a failed business transaction, unpaid invoices, a disagreement between business partners, misuse of confidential information, or a breach of fiduciary duty, the decisions made early in the process can significantly affect the outcome. We help clients evaluate their legal options, preserve critical evidence, pursue efficient resolutions through negotiation when appropriate, and litigate aggressively when necessary. Our focus is always on protecting our clients' business interests while pursuing practical solutions that align with their long-term objectives.

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FAQ

A demand letter is often the right place to start, but it is not required in every business dispute. A well-drafted demand letter explains your legal position, outlines the other party's obligations, and gives them an opportunity to resolve the dispute before litigation begins. In many cases, receiving a letter from an attorney signals that you are prepared to enforce your rights and can lead to productive settlement discussions without filing a lawsuit.
That said, we do not believe a demand letter should be sent automatically. If the other party has made it clear they have no intention of paying, is moving assets, diverting customers, misusing confidential information, or continuing to damage your business, filing suit immediately may be the better strategy. In New York, there are also situations where seeking immediate court intervention, such as a temporary restraining order or preliminary injunction, may be necessary to prevent ongoing harm.
Many business owners ask whether they have a good case. In our view, that is only half the question. The better question is whether pursuing litigation makes business sense. A strong legal claim has little value if the defendant has no assets, the expected recovery is small, or the cost of litigation outweighs the likely benefit.
At the same time, waiting too long or refusing to enforce your rights can encourage further misconduct. Sometimes litigation is the only realistic way to recover what you are owed, stop a competitor's wrongful conduct, or protect your ownership rights. Before filing suit, we evaluate the strength of the claims, the available evidence, the likelihood of collecting a judgment, and the client's business objectives. Litigation should be a strategic business decision, not simply an emotional reaction.
The answer depends on the type of legal claim involved. In New York, different statutes of limitations apply to different business disputes. For example, many breach of contract claims must generally be filed within six years, while claims involving fraud, breach of fiduciary duty, or other business torts may be subject to different deadlines depending on the specific facts and legal theories involved. Determining the correct deadline is not always straightforward, particularly when multiple claims arise from the same dispute.
One of the biggest mistakes we see is business owners assuming they have plenty of time because negotiations are ongoing. They spend months trying to work things out, only to discover that critical deadlines are approaching or that important evidence has become more difficult to obtain. Waiting can also weaken your position in other ways. Witnesses leave companies, documents are lost, electronic records are deleted, and the other party has more time to move assets or reshape the narrative surrounding the dispute.
Our advice is simple: do not wait until negotiations have completely broken down before speaking with a litigation attorney. Consulting an attorney early does not mean you have to file a lawsuit immediately. In many cases, it strengthens your negotiating position because you understand your legal rights, the applicable deadlines, and the risks facing both sides. Even if litigation is ultimately avoided, knowing your options early allows you to make business decisions from a position of strength rather than urgency.
The most important thing you can do is preserve evidence. Contracts, emails, text messages, invoices, accounting records, purchase orders, internal communications, and electronic files may all become critical if litigation follows. Business owners also make the mistake of sending angry emails, deleting messages, or trying to "win the argument" before speaking with counsel. Those decisions often make litigation more difficult.
You should also evaluate what you actually want to accomplish. Is your goal to recover unpaid money, enforce a contract, remove a business partner, stop someone from using confidential information, or preserve an important customer relationship? The answer will shape the legal strategy. In many cases, a carefully planned approach before filing suit leads to a stronger negotiating position and a more favorable outcome if litigation ultimately becomes necessary.
Most business lawsuits settle before trial, but that does not mean settlement is always the right answer. Whether to settle depends on the strength of your case, the potential damages, the cost of litigation, the risks of trial, and your broader business objectives. Sometimes an early settlement saves significant time and expense. Other times, accepting a poor settlement only encourages future disputes.
We encourage clients to approach settlement as a business decision rather than an emotional one. A reasonable settlement may preserve valuable business relationships, reduce uncertainty, and allow management to focus on running the company instead of participating in lengthy litigation. At the same time, some cases deserve to be litigated aggressively because the legal or financial stakes are simply too high.
Our goal is to put clients in the strongest possible negotiating position. That means preparing every case as though it may go to trial while remaining open to practical settlement opportunities along the way. Businesses that are prepared to litigate often negotiate from a position of greater strength than those simply hoping to avoid court.

Business disputes

Breach of Contract & Nonpayment

Receiving a demand letter does not necessarily mean you are about to be sued. In many cases, it is an invitation to resolve the dispute before litigation begins. That does not mean you should ignore it, but it also does not mean you should panic. The first step is to carefully review the allegations, preserve any relevant documents and communications, and avoid responding emotionally.
One of the biggest mistakes businesses make is firing off an angry email or making admissions before understanding their legal position. Anything you say may later become evidence if litigation follows. Before responding, you should review the underlying contracts, gather the relevant facts, and understand whether the claims have legal merit.
A demand letter often creates an opportunity to resolve a dispute on favorable terms before legal costs escalate. Even if you disagree with the allegations, consulting a business litigation attorney early can help you evaluate the claims, develop an appropriate response, and determine whether settlement, negotiation, or litigation is the best path forward.
If you are served with a summons and complaint, do not ignore it. In New York, strict deadlines apply to responding, and failing to answer the complaint on time can result in a default judgment, even if you have valid defenses. Once a default judgment is entered, undoing it can be difficult, time-consuming, and expensive.
Your first step should be to preserve all relevant documents and immediately review the lawsuit with an attorney. The complaint tells only one side of the story. Before deciding how to respond, your attorney will evaluate the allegations, identify potential defenses, determine whether there are counterclaims, and assess whether the case can be resolved early through negotiation or a motion to dismiss.
Treat every lawsuit seriously, but do not assume that being sued means you have done something wrong or that you will lose. Many commercial lawsuits involve legitimate business disagreements rather than clear misconduct. Responding quickly, preserving evidence, and developing a litigation strategy early often puts businesses in the strongest position to protect their interests.
Receiving a subpoena does not necessarily mean you are being sued. In many cases, a business receives a subpoena because it has documents or information relevant to someone else's lawsuit. That said, a subpoena is a legal document and should never be ignored. Failing to respond appropriately can expose your business to court sanctions or other legal consequences.
The first step is determining exactly what the subpoena requires. Some subpoenas seek business records, emails, financial documents, or contracts. Others require someone to appear for testimony or a deposition. In New York, subpoenas are governed by specific procedural rules, and there may be valid objections to the scope of the request or the time allowed for compliance.
We generally advise businesses not to produce documents immediately without first reviewing the subpoena with counsel. You may have confidentiality obligations to customers, employees, or business partners, and there may be privileged information that should not be disclosed. Responding carefully protects your legal interests while ensuring compliance with the law.

Nonpayment is one of the most common reasons businesses end up in litigation, but filing a lawsuit should not be your first instinct. Start by reviewing the contract, confirming the amount owed, and gathering supporting documents such as invoices, emails, change orders, purchase orders, delivery confirmations, and payment records. Many payment disputes arise because the parties have different understandings of what work was required or whether it was completed.
If the customer still refuses to pay, it is important to act sooner rather than later. A demand letter from counsel may be enough to resolve the dispute, but if it becomes clear that payment is not coming, delaying legal action rarely improves your position. Under New York law, you may have claims for breach of contract, an account stated, unjust enrichment, or other remedies depending on the facts. Every case is different, but businesses that address nonpayment promptly are generally in a stronger position than those that allow unpaid invoices to accumulate while hoping the problem resolves itself.
Not every breach of contract justifies filing a lawsuit, but every breach should be taken seriously. The first step is determining whether the other party actually failed to perform a material obligation under the agreement. Sometimes the issue is straightforward, such as failing to pay an invoice or deliver promised goods. Other times, the dispute involves missed deadlines, defective work, violations of exclusivity provisions, or disagreements over the meaning of the contract itself.
Before taking legal action, it is important to review the contract carefully. Many agreements contain notice requirements, cure periods, mediation or arbitration clauses, limitations on damages, or attorney's fee provisions that affect your legal options. In New York, courts generally enforce contracts as written, making the language of the agreement one of the most important pieces of evidence in any dispute.
Our view is that business owners should not assume every breach requires immediate litigation, but they also should not ignore repeated defaults or broken promises. Addressing the problem early often creates more opportunities to negotiate a favorable resolution before the dispute becomes more expensive and difficult to resolve.
Many business owners assume that the losing party automatically pays the winning party's attorney's fees. In New York, that is generally not the case. Under what is commonly known as the "American Rule," each side typically pays its own legal fees unless a contract or statute specifically provides otherwise.
This is one of the reasons contract drafting matters so much. Many commercial agreements include attorney's fee provisions stating that the prevailing party is entitled to recover reasonable legal fees and litigation costs. Whether that provision exists—and how it is written—can significantly affect both settlement negotiations and the overall value of a claim.
We often tell clients that attorney's fee provisions deserve far more attention during contract negotiations than they usually receive. A well-drafted fee-shifting clause can discourage frivolous disputes and provide meaningful leverage if litigation becomes necessary. It is much easier to negotiate that provision before a dispute arises than after.
The strongest breach of contract cases are built on documents, not memories. While witness testimony can be important, contracts, invoices, emails, text messages, purchase orders, change orders, delivery records, payment histories, and internal business records often become the key evidence in commercial litigation.
Business owners sometimes believe that only a signed contract matters. In reality, New York courts frequently consider the parties' communications and course of dealing when evaluating what happened after an agreement was reached. Emails discussing performance, invoices that were partially paid, or text messages acknowledging an obligation may all become important pieces of evidence depending on the circumstances.
One of the biggest mistakes we see is businesses waiting until litigation begins before organizing their records. By then, employees may have left, electronic data may have been lost, and key documents may be difficult to locate. Preserving evidence early often makes the difference between a strong case and a difficult one.

Responding to Legal Papers

Partnership & Shareholder Disputes

One of the most damaging business disputes occurs when a partner begins treating company assets as their own. This may involve taking money from company accounts, diverting customers, using company funds for personal expenses, competing against the business, or taking business opportunities that belong to the company. In New York, these actions may give rise to claims for breach of fiduciary duty, conversion, fraud, or other legal remedies depending on the facts.
The first priority is protecting the business. That often means gathering financial records, preserving electronic communications, reviewing governing documents, and determining whether immediate action is needed to prevent additional harm. Waiting too long can make it easier for assets to disappear and more difficult to reconstruct what happened.
Our advice is not to confront your partner without first understanding your legal position. These situations are often emotionally charged, and an impulsive response can make resolution more difficult. A carefully planned legal strategy may allow you to recover assets, remove a dishonest owner, or negotiate a business separation while minimizing further damage to the company.
Unfortunately, this is one of the most common disputes we see among closely held businesses. A partner may change passwords, remove another owner from bank accounts, take control of the company's website or domain name, change the login credentials for Instagram or other social media accounts, block access to customer databases, or exclude another owner from day-to-day operations. These actions often occur before formal litigation begins.
The first step is to preserve evidence and avoid taking retaliatory action. Save emails, text messages, account notifications, and any records showing your ownership interest or management rights. Depending on the circumstances, there may be legal remedies available to restore access, prevent additional misconduct, or preserve company assets while the dispute is resolved.
Our view is that business owners should never assume these disputes will resolve themselves. Once one owner begins excluding another from the business, the conflict often escalates quickly. Acting promptly can make the difference between preserving the business and spending months trying to recover assets or regain control.
Yes. The absence of a written partnership agreement does not necessarily prevent legal action. In New York, business relationships may arise through the parties' conduct, their financial contributions, profit-sharing arrangements, and other evidence showing they intended to operate a business together. Determining whether a legal partnership exists depends on the specific facts.
While a written agreement makes litigation easier, courts routinely examine emails, bank records, tax filings, ownership documents, communications, and the parties' course of dealing to determine each person's rights and obligations. These disputes often involve disagreements over ownership percentages, management authority, profit distributions, or fiduciary duties.
One of the biggest misconceptions is that "nothing was in writing, so I have no case." That is often incorrect. The lack of a written agreement may make the dispute more complicated, but it does not necessarily eliminate your legal rights. An attorney can evaluate the available evidence and determine what claims may exist under New York law.

Updated July 2026