Locked Out of Your Own Business? How a Delaware Co-Owner Resolved a Control Dispute

WILMINGTON, Del. — A co-founder of a Wilmington software company has been bought out for $1.35 million, ending a dispute that began when his partner cut off his access to company accounts and email.

The two each owned half the business. After a disagreement over a new investor, one partner changed the passwords and told staff to stop taking instructions from the other.

Without access, the locked-out owner could not see the company's finances or protect the value of his stake.

Ivenmore Law filed in the state's business court under the owners' agreement and obtained an order restoring his access to the books. The firm then hired a valuation expert to price his half of the business.

The partners agreed to a $1.35 million buyout, paid in installments over 18 months, and the court case was dismissed.

The buyout is paid over time, so the full amount depends on the company meeting its payments.

An owners' agreement that spells out access, deadlock and buyout terms can shorten a dispute like this considerably.