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FX.co ★ Business wars among relatives

Business wars among relatives

A lot of businessmen prefer not to work with their relatives. There are many examples when  business disputes in the family have led to animosity among relatives. Brothers became enemies and children sued their parents. Read about five family feuds caused by business disagreements.

Business wars among relatives

Adolf Dassler and Rudolf Dassler

The Dassler brothers founded a shoe company in the 20s of the last century. They cut ties in 1948 when they realised they couldn’t work side by side. Nevertheless, the reasons for the split are still unknown. Some people say that Adolf Dassler did not do anything to help his brother while the latter languished in a prisoner of war camp. After that, Rudolph could not forgive his brother. According to another version, Rudolf was stealing the company money. There is even a version that their wifes hated each other.

Thus, two companies appeared as a result of the feud: Adolf was the founder of Adidas and Rudolf was the owner of Puma.

Business wars among relatives

These two shoe factories divided the town into two enemy camps. Puma employees were not allowed to go out with Adidas workers. Marriages between firms’ employees were not welcomed. In order to talk to someone, people had to look at their shoes.

The Dassler brothers did not communicate until their death and were buried at different ends of the local cemetery. A football match between Adidas and Puma employees in 2008 put an end to animosity.

Business wars among relatives

Gordon Ramsay and Chris Hutcheson

World famous chef Gordon Ramsay was so busy in the kitchen that entrusted Chris Hutcheson, his partner and father-in law, with all financial matters of his business. Ramsay discharged him in 2010 due to fraud accusations.

Ramsay accused Hutcheson of illegally withdrawing £1.4 million from the accounts which he spent on his secret second family: a mistress and two children. The last straw of the feud occurred when Chris Hutcheson forged Gordon’s signature to rent an apartment in London.

Business wars among relatives

Hutcheson sued his son-in-law immediately, demanding compensation for illegal dismissal and non-payment of salary. As a result, all members of Ramsay-Hutcheson family were involved in the conflict. In court, Ramsay’s wife testified against her father, saying that Hutcheson did everything not to discuss financial matters and instantly sent Gordon away on business.

The lawsuit ended with a settlement. Ramsey paid £2 million to his father-in-law to break business ties with him and purchase Hutcheson’s share in the company.

Business wars among relatives

Kenneth Irving and rest of his family

The Irving family is the owner of the oil and gas empire Irving Oil in the third generation. The company accounts for 75% of all supplies from Canada to the United States.

At the beginning of the century, Kenneth Irving, Arthur’s oldest son, became the head of the company. It was a voluntary change of power. Kenneth had big plans to modernize and globalize the family business which, due to his father's opposition, wasn’t working properly.

Business wars among relatives

Kenneth was an official head of Irving Oil. However, Artur continued to intervene in company management dealing with organizational issues mainly. As a result, Kenneth had to spend a lot of time on running a business and disputing with his father on business matters. Irving Oil employees often recalled how during the meeting they were asked to leave the room, where father and son remained face to face and were having heated discussions. Due to constant quarrels, Kenneth had to undergo treatment in a psychiatric clinic. His father saw it as a weakness and tried to exclude Kenneth from the family trust.

Kenneth Irving went to court, trying to stop his father. The litigation has been lasting for two years. As a result Kenneth agreed on settlement if his family arranged a dinner in his honor and recognized his contribution to the business development. It is very sad when a person has to file a lawsuit in order to hear praise from the loved ones.

Business wars among relatives

Wallace McCain and Harrison McCain

Future kings of friench fries founded their family business in 1957. They had been working side by side for 35 years and transformed McCain Foods into one of the largest frozen food companies. There was a common door between their offices that never locked.

Peace in the family lasted until the day Wallace McCain appointed his son the head of company’s American department not taking into account his brother’s opinion. In response, Harrison spent the next year trying to remove his brother and nephew from the business. After all, Harrison also had a son and didn’t want to sit around. Though, despite the Dasslers, the McCaines story ended peacefully right before Harrison’s death.

Business wars among relatives

William Koch and Frederick Koch Vs Charles Koch and David Koch

Koch Industries is an oil refining, chemical manufacturing and investment company with an annual turnover of more than $100 billion. The Koch family owns the company in the second generation. The conflict began in the 80s of the last century when William and Frederick agreed to sell their brothers 5.5 million shares of the family company for $1.1 billion. Shortly after signing the papers, William went to court, complaining that buyers cheated and underpaid a substantial amount of money.

Business wars among relatives

The New York Times called the feud one of the most serious, vile and lengthy family proceedings in history. All these lawsuits enriched more than a dozen lawyers. Employees of private detective agencies happily built their lives, sending children to study at prestigious colleges with money they received from the Koch brothers. To dig up some dirt, detectives arranged surveillance, bribed cleaners, and delved into trash bins. William lost his case. The family managed to bury the hatchet only 20 years later when the brothers met together at dinner and settled their differences.

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