May 26, 2014 Category: Commercial Litigation
In business, it is essential to honor one’s agreements. Not only does this make for better business, it can also help to avoid future legal problems in Michigan or elsewhere. This includes proper usage of venture capital funding obtained from investors. It seems that one businessman may have failed to do this in a mall redevelopment project, and this has resulted in a business lawsuit.
The person in charge of implementing the redevelopment project has recently sued the project’s main investor. This recent lawsuit was filed in response to a previous complaint filed by the project’s main investor, Tangshan Ganglu, a foreign-based company. The previous lawsuit alleges that the businessman had misappropriated $48.7 million of venture capital funds. The previous lawsuit alleges that the defendant had attempted to obtain title to the property in the defendant’s own name, despite the funds for the purchase being obtained from Tangshan Ganglu.
The most recent lawsuit filed by the man heading the redevelopment project claims that the foreign company’s allegations against him are not true. This most recent complaint alleges that the chairman of the foreign company had used investments from foreign investors in order to enrich himself. Tangshan Ganglu owns Mapuche LLC, which is 80 percent owner of the redevelopment project, while the man heading the project owns the remaining 20 percent.
Just like any lawsuit in Michigan and other states, if the parties to the lawsuits are not able to come to a compromise, they may have to continue on with the business litigation process. The party with the best legal argument based upon facts and evidence will have the best chance of a favorable outcome. However, one should be sure to understand the underlying laws in order to make a strong argument in court.
Source: South Florida Business Journal, “Fashion Mall redevelopment manager fires back with lawsuit“, Brian Bandell, May 23, 2014