Readers may have heard of six degrees of separation in the context of personal relationships, but a recent story suggests that the business world might not be so different.
In this particular example, a partnership dispute is now getting personal, extending to the father of one of the partner’s fathers. Admittedly, the father is a notable figure: billionaire bond investor William Gross.
Gross has been in the news recently for allegations brought by some of his former partners at the company he co-founded, Pacific Investment Management Company. The partners claim that Gross’ allegedly erratic behavior prior to his departure may have contributed to the firm’s recent financial struggles.
However, Gross’ son Nicholas also had his share of business litigation concerns. Nicholas Gross formed a 50-50 partnership with Donny Graves in a venture called G Squared Media Holdings. However, Nicholas disagreed with some of his partner’s behaviors, believing they exposed the partnership to unnecessary risk. He filed a lawsuit to dissolve the partnership.
However, Donny recently responded with his own lawsuit, countering that Nicholas’ father, William Gross, interfered with the partnership’s dealings. There is a connection: As in many general partnerships, each partner contributed capital to the formation. However, the $1.5 million that each of them borrowed had come from a limited liability company through which William Gross allegedly had dealings.
As this story illustrates, business relationships can be as intricate as personal relationships. When those connections go sour, a business litigation attorney can work to defend a business owner against an unfavorable outcome — such as personal liability for the entity’s debts or obligations.
Source: Forbes, “Bill Gross Sued By His Son’s Business Partner,” Nathan Vardi, Oct. 7, 2014