Provided by:  Jennifer Kirschenbaum, Esq.

September 25, 2018

 

Question:

Dear Jennifer,

Our practice submitted an objection to MLMIC to prevent the payment of cash consideration to our former employee.  The MLMIC transaction has been approved. Now what?

Thanks, Dr. R

Answer: 

Hi Dr. R, I asked Robert Plosky, Esq. to take this one, as Robert is heading our MLMIC payout disputes -  

The Superintendent of the New York State Department of Financial Services has requested that MLMIC appoint an alternative dispute resolution (“ADR”) specialist to assist parties in your position in resolving disputes as to the cash consideration.  The ADR process would be voluntary, paid for by MLMIC, and remain open for 90 days following the closing (which MLMIC anticipates as October 1, 2018).  Each side would be afforded an opportunity to present its position to the ADR specialist in writing.  Any determination would not be binding on the parties unless they agreed to make it so, and would not otherwise prevent parties from seeking relief in a court, through arbitration, or by some other means.  MLMIC has told us that it is working on setting up the ADR process but has no additional details to share at this time.  We assume it will follow closely the Superintendent’s recommendations.  One key open issue is the confidentiality of the ADR process,  e.g., the identities of the parties, the written submissions, and the outcome of each case.  Until we learn more (and even after), we would advise you to call to discuss whether to participate and in drafting any written submissions, as what you submit will be used later for consideration.


A major concern is the limited time frame, and the potential volume of disputes... 
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