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Zashin and Rich Judicial Dissolution Lawsuit
Zashin and Rich Judicial Dissolution Lawsuit
BYRD
CUYAHOGA COUNTY CLERK OF COURTS
1200 Ontario Street
Cleveland, Ohio 44113
vs.
Judge: MICHAEL J. RUSSO
ZASHIN & RICH CO., L.P.A., ET AL.
Pages Filed: 9
STEPHEN S. ZASHIN )
18701 South Park Blvd. )
Shaker Heights, OH 44122 )
) CASE NO.:
Plaintiff, )
) JUDGE:
v. )
) VERIFIED COMPLAINT FOR JUDICIAL
ZASHIN & RICH CO., L.P.A. ) DISSOLUTION
950 Main Ave. 4th Floor )
Cleveland, OH 44113 )
)
and )
)
ANDREW A. ZASHIN )
21 Hunting Hollow )
Pepper Pike, OH 44124 )
)
)
Defendants. )
)
Now comes Plaintiff, Stephen S. Zashin, and for his Complaint for Judicial Dissolution
states as follows:
THE PARTIES
2. Defendant, Zashin & Rich Co., L.P.A., (“ZR”) is an Ohio professional corporation
duly formed and existing under the laws of the State of Ohio, with its principal place of business
4. This Court has jurisdiction over Plaintiff's claim insofar as it arises under Ohio
5. This Court has jurisdiction over Defendants pursuant to Ohio R.C. § 2307.382.
6. Venue is proper in this Court pursuant to Ohio R. Civ. P. 3(C)(1)(2)(3)(5) and (6).
FACTUAL ALLEGATIONS
herein.
8. At all times relevant herein, Stephen S. Zashin, Trustee of the Stephen S. Zashin
9. At all times relevant herein, Andrew A. Zashin, Trustee of the Andrew A. Zashin
Declaration of Trust dated October 18, 2000 as modified has been a 50% shareholder of ZR.
10. The current Board of Directors of ZR consists of just two directors and two
11. At all relevant times, ZR has engaged in two principal areas of practice: workplace
12. ZR’s family law practice was established in 1981 and built through the hard work
and dedication of the firm’s founder, Robert Zashin. As Robert Zashin entered retirement, Andrew
took over the responsibility for operating the firm’s family law practice. Since that time, the family
law practice of ZR has been run exclusively by Andrew, without any material input from Stephen.
13. Stephen started, and built, ZR’s workplace law practice. At all times, the workplace
law practice of ZR has been run exclusively by Stephen, without any material input from Andrew.
15. Andrew’s absence forced Stephen to serve as ZR’s managing partner, which
16. Up until that point, Stephen and Andrew had been splitting the year-end net income
50/50.
17. The disparity between the responsibilities of Stephen and Andrew, however,
Specifically, ZR’s only two shareholders, directors and officers agreed that Stephen would receive
70% of the year-end net income from the firm and Andrew would receive 30% of the year-end net
income from the firm. This compensation structure remained in place with the knowledge and
consent of Stephen and Andrew from September 30, 2009 until September 30, 2014.
19. Thereafter, at Andrew’s request, a new compensation structure was agreed upon.
Specifically, ZR’s only two shareholders, directors, and officers agreed that Stephen would receive
66 2/3 % of the year-end net income from the firm and Andrew would receive 331/3 % of the year-
end net income from the firm. This compensation structure has remained in place from September
30, 2015 to the present. An Action By Written Consent of the Shareholders of ZR was executed
20. In early 2023, after years of inactivity and indifference, Andrew began to insert
himself in the operation of the firm. One of Andrew’s first items of business was to attempt to
change the longstanding compensation structure so that he could receive more money. When
Stephen refused, Andrew began to make threats and engaged in efforts to change the
significantly diverged from Stephen’s business interests. Since then, Andrew and Stephen have
been unable to agree on material issues that affect the operation of ZR.
21. As well, in March 2023, without Stephen’s knowledge or consent, Andrew began
22. On March 17, 2023, Andrew went to look for new office space for his new
23. On March 21, 2023, Andrew formed Zashin Law, LLC. On that same date,
Andrew registered the following fictitious names: Zashin Legal Group, Zashin Law Group,
Zashin International Family Law, and Zashin Family Law. Andrew never disclosed this to
Stephen.
24. Andrew also established a Facebook account for “Zashin Family Law”
advertising that it was a “Cleveland based law firm that represents individuals in all facets of
26. On March 29, 2023, a Special Meeting of the Shareholders of ZR was called by
Stephen in his capacity as a 50% shareholder. Andrew and Stephen both participated in the
special meeting. Stephen moved to dissolve ZR. Andrew voted against dissolution.
27. Since then, Andrew and Stephen have both retained separate counsel. As well, ZR
has retained separate counsel. A myriad of disagreements over firm business persist.
frequently yells, uses profanity, and makes threats while he is in the office. His anger is not
limited to Stephen. Andrew treats others who he perceives to be aligned with Stephen poorly as
well.
COUNT ONE
Judicial Dissolution of Zashin & Rich Co. L.P.A. Under Ohio R.C. §1701.91(A)(4)
29. Plaintiff incorporates the foregoing allegations by reference as if fully set forth
herein.
30. Ohio R.C. §1701.91(A)(4) provides for judicial dissolution of a corporation when,
as here, an even number of directors are deadlocked in the management of corporate affairs:
***
By an order of the court of common pleas of the county in this state in which the
corporation has its principal office, in an action brought by one-half of the directors
when there is an even number of directors.. .when it is established that the
corporation has an even number of directors who are deadlocked in the
management of the corporate affairs and the shareholders are unable to break the
deadlock,.. .Under these circumstances, dissolution of the corporation shall not be
denied on the ground that the corporation is solvent or on the ground that the
business of the corporation has been or could be conducted at a profit.
32. This cause of action is brought by Stephen, representing one-half of the directors
of ZR.
34. Stephen and Andrew are deadlocked in the management of the corporate affairs of
ZR. The deadlock extends to decisions relating to employees, business records, business
ZR.
the shareholders of ZR from ZR’s corporate record book as required by Ohio R.C. §1701.91(B).
37. The shareholders of ZR are unable to break the deadlock between the directors.
38. Pursuant to Ohio law, this deadlock mandates the judicial dissolution of ZR.
39. Accordingly, Stephen petitions this Court to issue judgment judicially dissolving
(a) . An Order judicially dissolving Zashin & Rich Co. L.P.A. and causing it to wind up
(b) . Any and all remedies or relief available under the Ohio Revised Code, permitted
Respectfully submitted,
/s/Andrew A. Kabat_____
Andrew A. Kabat (0063720)
Polk Kabat, LLP
1300 W. 78th Street, Suite 305
Cleveland, OH 44102
(216) 241-0700
Fax: (216) 241-0739
akabat@polkkabat.com
I, Stephen S. Zashin, being first duly sworn, depose and state that I have been a director,
officer, and, through my trust, a 50% shareholder of Zashin & Rich Co. L.P. A. at all relevant times
and that the Verified Complaint and the allegations contained therein are true and accurate to the
best of my knowledge and belief.
Swom to and subscribed before me, a Notary Public, this 1* day of September 2023.
CORPORATION
SHAREHOLDERS: DIRECTORS:
OFFICERS
EXHIBIT 1
Red Ohio Seal
Common Stock
Zashin & Rich Co., L.P.A.
SHAREJOURNAL
Common Stock
Shares Issued
Robert I. Zashin
9/25/81 1 1 98 -0-
Cancelled
Lawrence J. Rich
9/25/81 2 2 1 -0-
Cancelled
John Sutula
9/25/81 3 3 1 -0-
Cancelled
Carl C. Monastra
7/27/87 4 4 1 -0-
Cancelled
Robert I. Zashin
7/27/87 1 5 97 -0-
Cancelled
Robert I. Zashin
6/30/92 ! 1 6 98 -0-
1 Cancelled
Robert I. Zashin
6/30/94 1 7 99 -0-
Cancelled
Robert I. Zashin
12/29/98 1 8 100 -0-
Cancelled
Andrew A. Zashin
1/2/99 5 11 50 -0-
Cancelled
Effective
12-31-98
Stephen S. Zashin
1/2/99 6 12 50 -0-
Cancelled
Effective
12-31-98
974625