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Partnership Disputes

Business partnerships usually start with the best of intentions but can end very badly for the individuals and the business. We help clients try to prevent disputes from ruining a business through agreements that create a way for partners to leave the business with as little disruption as possible. If the parties can’t resolve their differences through an agreement or negotiation, litigation can result in a decision stating which partner is entitled to what.

Partnerships are created when two or more people go into businesses together and do not form some other formal business entity, such as a corporation or limited liability company.  Partnerships can be created simply because those involved act as partners without the relationship being formalized. A partnership can also be the result of a formal agreement.

If an agreement’s been made it should have a provision about how disputes can be resolved and how the partnership can be dissolved if disputes can’t be brought to a close. Without an agreement in place partners are bound by state law and how they’ve been interpreted by the courts.

Partnership disputes can be difficult and differences can become very personal.  Partners may have invested years of their lives and substantial amounts of money into the partnership.  They may have encountered problems soon after the business started or the relationship may have worked well for years before disputes pulled the parties apart. These types of cases are accurately called “business divorces” because they can involve a lot of emotions and relationships that may have lasted for years.

Disputes between partners can be resolved through negotiations involving the parties and their attorneys, mediation, arbitration or through a lawsuit.

  • If emotions haven’t boiled over direct negotiation may end the dispute and relationship so all parties can move on.
  • An independent third party could also mediate negotiations between the parties.
  • An arbitration is essentially a private trial the parties agree to participate in where an arbitrator, or a panel of them, sits as judge and renders a decision.
  • Relatively few partnership disputes are resolved at a trial but that may be the outcome if the parties can’t agree to a resolution.

There could be any number of causes for disputes that can end a partnership. A partner may be accused of not putting enough effort into the enterprise, fiduciary duties may be breached or a partner may simply want to leave but the parties can’t come to an agreement on compensation. No matter the cause We can help with the situation no matter which side of the dispute you’re on.

We can help you protect you and your business by creating and enforcing partnership agreements. He can discuss the issues that may come up while operating a partnership and come up with an agreement that can protect your interests. If the differences can’t be ended, he can also represent you through the litigation process to protect your rights and make sure you receive your fair share of the business. To schedule a consultation with an experienced California business law experts at Focus Law, by calling (714) 415-2007 now.

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