Attorneys; Conflict of Interest; Shareholders' Claims
When two friends decided to start a new company, they hired a law firm to incorporate the business. Their lawyers issued stock in the new company to themselves in addition to charging a fee for the incorporation work. Later, when the company became highly profitable, the lawyers claimed a share of the profits, attempted to take control of the business, and sued to enforce their rights as shareholders. The Firm counterclaimed against the lawyers, defended the business owners, defeated the lawyers' claims, and obtained 100% ownership of the company's stock for the Clients.