10 Things To Know When Your Business Partner Files A Criminal Complaint Against You

April 27th, 2024

Business law, partnerships and contracts can be complicated. Conflicts can arise unexpectedly, turning what was once a business and collaborative endeavour into a legal battleground. However, what happens when a disagreement takes a potentially menacing turn? Picture this scenario: You find yourself embroiled in a civil contract dispute with a business partner, only to discover that they have opened a criminal case against you, seemingly as a tactic of intimidation. How do you navigate this complex legal landscape while ensuring your rights are upheld? This week a client of mine engaged in business in Tanzania found themselves arrested and detained for an issue that stemmed from a contractual matter. I am sharing some tips that you should consider if you were to find yourself in this situation. This happens more often than you would expect, so pay attention.

1. Understanding the Terrain

First and foremost, it’s crucial to understand the distinction between civil and criminal matters. Civil disputes typically revolve around contractual obligations, breaches, or disagreements over terms. On the other hand, criminal cases involve allegations of illegal activities, such as fraud, theft, or other criminal offenses.

2. Understanding Criminal Intimidation

Criminal intimidation occurs when one party uses threats of legal action or other coercive tactics to intimidate or harass another party. In the context of civil disputes, this can take the form of filing baseless criminal cases to exert pressure or gain leverage.

3. Seek Legal Expertise

Engage with seasoned legal professionals who specialize in both civil and criminal law. They can provide tailored guidance, evaluate the merits of the criminal case, and formulate a strategic legal response. Understanding the nuances of each legal arena is key to mounting an effective defense.

4. Strategic Planning

Develop a comprehensive strategy that addresses both the civil contract dispute and the criminal case. Identify key objectives, potential risks, and alternative resolutions. A well-thought-out plan ensures you’re prepared for various outcomes and can adapt to evolving legal dynamics.

5. The Importance of Legal Compliance

While intimidation tactics may be unsettling, it’s crucial to remember that legal procedures and rights must be upheld. Criminal procedure laws dictate strict protocols for detaining individuals. This includes obtaining warrants and ensuring there are reasonable grounds for suspecting the individual of criminal conduct.

6. Upholding Rights Through Due Process

If faced with a criminal case opened as a form of intimidation, it’s imperative to assert your legal rights and demand adherence to due process. This includes:

1.  Warrant Requirement: Insist that any detention or arrest is based on a valid warrant issued by a competent authority. A warrant serves as a safeguard against arbitrary detention and ensures that legal standards are met.
2. Reasonable Suspicion: Emphasize the need for reasonable grounds to suspect criminal conduct. Mere allegations without substantial evidence do not meet the threshold for detention or legal action.
3. Legal Representation: It is your right to have legal representation every step of the way. Therefore, engage competent legal representation specializing in criminal law. A skilled attorney can navigate the intricacies of criminal proceedings, challenge unfounded allegations, and safeguard your rights.

7. Challenging Intimidation Tactics

Dealing with intimidation tactics requires a strategic approach so consider the following steps:

1. Document Everything: When as your advisers we tell you to document everything, we are not being extra! We know that challenges may arise, and you will need evidence. So, maintain meticulous records of all communications, transactions, and interactions related to the dispute. Documentation serves as crucial evidence in challenging intimidation tactics and defending your position.
2. Consult Legal Experts: Seek guidance from legal experts well-versed in criminal law and procedure. They can assess the validity of the criminal case, advise on legal strategies, and advocate for your rights in legal proceedings.
3. Assert Legal Rights: Firmly assert your legal rights throughout the process. Demand transparency, adherence to due process, and accountability for any intimidation tactics employed.
4. Explore Alternative Dispute Resolution: Consider alternative avenues for resolving the civil dispute, such as mediation or arbitration. These methods can offer a less adversarial and more efficient means of reaching a resolution.

8. Communication is Key

Clear and transparent communication is essential, both internally within your business and externally with legal representatives and stakeholders. It is important to communicate what is happening to your stakeholders, employees and investors in a clear manner so as to avoid any more liabilities that may arise from the situation. Keep all parties informed of developments, strategies, and expectations. Open dialogue fosters trust and collaboration, crucial elements in navigating complex legal challenges.

9. Keep a Cool Head

In the face of a criminal case stemming from a civil contract dispute, emotions can run high. However, maintaining a level head is paramount. Reacting impulsively or emotionally can exacerbate the situation. Instead, focus on gathering facts, documentation, and legal counsel to build a robust defense.

10. Focus on Resolution

While legal battles can be draining, maintain a focus on resolution. Explore avenues for mediation, arbitration, or settlement negotiations. Resolving disputes amicably, when possible, can save time, resources, and mitigate reputational damage.