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Posted: December 10, 2015

Areas of Dissension Insufficient Basis for Ordering Law Firm’s Dissolution

On December 3, 2015, the First Department issued a decision in Matter of Klein v. Klein Law Group, P.C., 2015 NY Slip Op. 08940, finding that dissension in a law firm was insufficient to justify the firm’s dissolution, explaining:

The ultimate remedy of dissolution and forced sale of corporate assets should only be applied as a last resort. Accordingly, the motion court providently exercised its discretion when it denied the petition for dissolution of the subject corporation. The areas of dissension, as alleged in the petition and affidavits, do not impede the ability of the firm to function effectively.

(Internal quotations and citations omitted).

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