Our Family Business at Odds

By Kerry T. Ryan, Esq.

A family dispute raging "down under" raises the fundamental question of one generation's concern about the generation to follow.  As described in more detail in the article linked below, Gina Rinhart, described as Australia's "richest person" with a fortune estimated by Forbes at $20 billion, is in the middle of a battle with three of her four children over the management of the family's multibillion dollar trust.  It is claimed by the children that Mrs. Rinehart warned them that they could face a $142 million capital gains tax unless they immediately agreed to let her retain control of the family trust.  It is reported that Mrs. Rinehart for her part claims that her children are "manifestly unsuitable" to manage the trust because they lack the "requisite capacity or skill, [and] the knowledge, experience, judgment or responsible work ethic". 

 By Matthew S. Furman, Esq.

 There is an educational lesson for family business owners on the campus of Syracuse University.  Varsity, a Syracuse institution, has been serving hungry and thirsty students at the corner of Marshall Street and South Crouse Avenue since 1926.  Three generations of owners have been successful not just because they have been willing to keep things the same, but because they have been willing to change things as well.

By Kerry T. Ryan, Esq.

Much has been written over the last few days about Arizona Rep. Gabrielle Giffords.  One of the significant pieces of information somewhat buried in some of the stories relates to Ms. Giffords' stint as president of El Campo Tire & Service Centers, Inc., a family business founded by her grandfather in 1949.  According to one of the articles attached below, Ms. Gifford grew up working summers in the family business and never planned to work fulltime in it.  It was only when her father became ill that Ms. Gifford drove cross-country to return home and help out.  That probably sounds like a familiar story for those families running a family business.  How many times has a son or daughter jumped into the void created by a sudden illness or death?

By Matthew S. Furman, Esq.

In my last post, I used a story about some circus heirs to emphasize the importance of resolving family disputes privately.  Although the saga below can be used to emphasize that same message, this story about California’s Murray family presents a different lesson for family business owners.  When succession planning, make sure that you define what you want from the business before you relinquish control of it.  As the story of Murray v. Murray illustrates, you just never know what can happen.

By Edward D. Tarlow, Esq.

Ourfamilybusinessatodds.com strives to help family business owners survive the complex disputes and emotional rollercoaster that they experience in a family business.  We try to offer tangible practical advice based upon examples provided by the family business disputes that make the headlines.  We have the same goals as the authors of an excellent book I've been reading, Family Wars, Stories and Insights from Famous Family Business Feuds by Grant Gordon & Nigel Nicholson.  There is an educational component to the book that takes interesting stories about famous families such as Ford, Gucci, Guinness and Gallo, and turns them into learning experiences.