When an ownership dispute threatens the business, New Jersey courts can move quickly to stabilize operations—through restraining orders, interim managers or directors, special fiscal agents, and books‑and‑records relief. This relief often will keep the keeps running and preserve value.
Who this page is for:
Owners, boards, and in‑house counsel of closely held, solvent operating businesses facing urgent partner or shareholder conflict in New Jersey state court or federal court in New Jersey.
The goal: Keep the business running and protect its value
In a fight among the owners, whether shareholders, LLC members or partners, time is the enemy. Customers get nervous, vendors slow‑roll shipments, key employees start looking for new jobs. Emergency relief is about stability—freezing harmful conduct, restoring access, and installing neutral oversight where needed—so the company can operate while the dispute is resolved.
When to call us (early warning signs)
- A co‑owner locks you out of bank accounts, accounting software, email, or premises.
- Funds are diverted or a new, competing entity appears.
- Key contracts, IP, or customer relationships are at risk of being moved.
- The board is deadlocked and decisions cannot be made.
- You need fast access to books and records to understand what’s happening.
- Vendors, payroll, or tax payments are slipping—without a business reason.
- Rumors and mixed messages are spreading to employees and customers.
The outcome we drive toward: A court order that stops harmful conduct, restores access and visibility, and installs neutral guardrails—without derailing daily operations.
What the court can do—quickly
Below are the most common remedies New Jersey courts can issue on an accelerated basis. We tailor the request to what your business actually needs.
1) Temporary Restraining Orders & Preliminary Injunctions
Purpose: Stop the immediate harm and maintain the status quo.
Examples of what can be ordered:
- No transfers, withdrawals, or extraordinary spending without written consent or court approval.
- No customer or employee poaching; no use of confidential information outside the company.
- Restore access to banking, accounting, email/IT, premises, and cloud tools.
- Stop a competing venture formed with company assets or opportunities.
What the court looks for, in plain English:
Credible evidence that serious harm is happening or imminent, that your position has strong factual support and is reasonably likely to prevail, that an order is needed to prevent damage that money alone won’t fix and that in balancing the interests of the parties, your position merits relief.
2) Custodians, Interim Managers, or Interim Directors
Purpose: Provide neutral leadership or tie‑breaking so the business can function.
- A custodian or interim manager can oversee day‑to‑day operations and ensure company policies are followed.
- An interim director can break board deadlocks on specific decisions (e.g., sign a lease, approve payroll, renew insurance).
- Tailored authority: the order can limit scope so the neutral only touches what is necessary.
Plain‑English distinction: A custodian or interim manager/director keeps the company operating and protects going‑concern value. A receiver (see below) is more intrusive and is often linked to wind‑down or liquidation; we use that only as a last resort.
3) Special Fiscal Agents
Purpose: Insert financial oversight without taking over management.
- Co‑signing for payments above a set threshold.
- Monitoring cash flow, receivables, and payables; reporting to the court and parties.
- Ensuring no off‑books accounts, cash skimming, or insider transfers.
This tool is ideal when the business needs speed and continuity, but stakeholders also need confidence in the numbers.
4) Books & Records (Fast Information Access)
Purpose: Get the documents and data you need to evaluate risk and plan next steps.
- Accounting files (QuickBooks/ERP extracts), bank statements, payroll reports.
- Operating agreements, minutes, cap tables, option or phantom equity records.
- Major contracts, customer lists, IP filings, insurance, taxes.
Courts can set short deadlines and format requirements (e.g., native exports) so you receive usable information quickly.
5) Receivers & Other Liquidation Remedies (Not our first choice)
Receivership or wind‑down tools exist but are generally inappropriate for healthy, solvent companies. We mention them here only for completeness. In most operating‑business disputes, injunctions plus custodians/fiscal agents provide the right level of control without killing momentum.
Our approach in New Jersey state and federal courts
We act with urgency, but we also keep operations practical and calm.
- Collect the facts (24–48 hours): Interview decision‑makers; secure documents and IT access; identify immediate risks (payroll, vendor cutoffs, customer notices).
- Build the Case Framework: Prepare Concise affidavits, exhibits, briefs that make sense to a business audience, and practical solutions the court can implement.
- File an emergency application: In NJ state court (Chancery Division) or federal court (Disttric of New Jersey), as promptly as possible. We seek tailored orders that fit the business—not boilerplate.
- Proposed order that the judge can adopt or modify: clear do/don’t lists, limited scope for any neutral, and a short schedule for a follow‑up hearing
- After the order: We help your team operate under the order, coordinate with the neutral (if any), and prepare the matter for resolution or trial.
What we need from you in the first 24–48 hours
- Operating/Shareholder Agreement, signed and executed, and any amendments.
- Cap table and ownership ledger; any buy‑sell terms.
- Banking: account lists, signers, credit lines, merchant services.
- Accounting export (e.g., QuickBooks) and last 12 months of bank statements.
- Payroll, key vendor/customer lists, major contracts, insurance.
- IT map: domains, email admin, cloud storage, bookkeeping/ERP, CRM, code repositories.
- Any communications showing lockouts, diversions, or competitive activity.
We provide a one‑page intake checklist so your team can gather this efficiently.
Timeline at a glance (expedited matter)
- Day 0–3: Intake, risk triage, document grab, draft papers.
- Day 2-5: File complaint and emergency application; serve the other side.
- Day 3–10 Court conference or hearing; temporary orders entered.
- Weeks 2–4: Follow‑up disclosures, possible appointment of custodian/interim director or special fiscal agent; operations stabilize.
- 30–90 days: Initial case management conference, case maps toward resolution track (buy‑out, governance fix, or trial track) or discovery without damaging the business.
Protecting going‑concern value (some of what we build into orders)
- Preservation of the status quo by precluding any major changes to the business.
- Communications plan for employees, customers, and vendors (neutral, “business as usual” tone).
- Data and credential control (admin access, safe‑harbor for IT).
- Purchasing and payment thresholds with light‑touch oversight.
- No‑solicit / no‑compete conduct rules during the case.
- Valuation and financial visibility (monthly reporting, KPI snapshots).
Representative scenarios (anonymized)
- Lockout & cash diversion stopped: Court issues a same‑week order restoring banking and systems access; appoints a special fiscal agent to co‑sign payments over $25k; permitting business to cover payroll and shipp on schedule.
- Board deadlock resolved: Interim director is appointed with authority limited to vendor approvals and a time‑sensitive lease; order included a books‑and‑records schedule; no disruption to customer contracts.
- Customer/employee poaching paused: Preliminary injunction entered; neutral custodian oversees customer communications; revenue remains consistent as matter is resolved.
FAQs
Can the court act without notice?
Generally, no. However In true emergencies, courts can move very quickly, sometimes on shortened notice. If, however, there is a risk of misappropriation or destruction of property, a court may enter an order without notice.
Will a custodian take control away from management?
Not necessarily. The order can limit scope so the neutral only oversees specific issues (e.g., payments over a threshold, tie‑break votes), leaving daily operations to your team.
Who pays a special fiscal agent or custodian?
Usually the company, but sometimes the cost is shared by the parties. We negotiate reasonable scope and fees to fit the size of the business.
Will seeking relief spook the market?
When necessary, we will include a communications plan in our proposal and keep filings as focused as possible. The goal is to stabilize confidence, not raise alarm.
Is receivership the right tool here?
Not for healthy companies if it can be avoided. We typically pursue injunctions and limited‑scope neutrals that preserve value and momentum.
Call to action
Need to stabilize a shareholder dispute this week?
We can prepare and file an emergency application on a tight timeline.