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Wednesday, November 6, 2013

Right of First Refusal in Family Law Cases


Right of first refusal (ROFR or RFR) is a contractual right that gives its holder (the parent) the option to enter a business transaction with the owner of something (the child/ren), according to specified terms, before the owner (the parent/s) is entitled to enter into that transaction with a third party (extended family of origin and family of choice).

In brief, the right of first refusal is similar in concept to a call option. An ROFR can cover almost any sort of asset, including real estate, personal property, a patent license, a screenplay, or an interest in a business.........wait just a minute! Where are children in this list? Hmmmmmm. . .

It might also cover business transactions that are not strictly assets ....okay, then, here it comes... such as the right to enter a joint venture or distribution arrangement. . . Huh?! Again, where are the children??? Where do they fit?

In entertainment, a right of first refusal on a concept or a screenplay would give the holder the right to make that movie first. Only if the holder turns it down may the owner then shop it around to other parties. Geez...I am just not getting this!

Because an ROFR is a contract right, the holder's remedies for breach are typically limited to recovery of damages. In other words, if the owner sells the asset to a third party without offering the holder the opportunity to purchase it first, the holder can then sue the owner for damages but may have a difficult time obtaining a court order to stop or reverse the sale. Ohhhhhh....now I get it!

So, if I ask my best friend to trade overnights for our children so that we can each have some grown-up time, I can be sued by my coparent to recover the damages done to....now I am lost again. What are the damages? My child loves my best friend and her children so that can't be where the damages occur. My child can't wait to have my best friend's children spend the night at our house as soon as possible so that can't be where the damages occur. I get a little grown-up time which allows me to replenish myself, feel awesome about my life, and excited to reunite with my child, so that can't be where the damages occur. 

However, in some cases the option becomes a property right that may be used to invalidate an improper sale. This makes no sense at all! How in the world is somebody going to go back in time and take away the experience of fun, happiness, and joy my child experienced when he got to spend the night at his friends' house!?

I don't know about you but I am thinking that this whole concept of a Right of first refusal (ROFR) is completely inappropriate in the context of Family Law.  First of all, children aren't property, and second, coparenting is not about the rights/ownership of the parent; it's about the well-being of the child!
Hannah's House has FREE support groups for Moms and Dads who are co-parenting 2-home children. Child care is provided. Dad's Group is Monday night from 6-7 pm and Mom's Group is Friday night from 6-7 pm. The groups are open to any Mom or Dad with 2-home kids!

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