Partnership Disputes

Partnerships allow multiple individuals to operate a business together with shared profits and losses. Various types of partnerships are popular among small businesses: general partnership, limited partnership, and limited liability partnership. Regardless of the partnership type, disputes between partners can threaten the viability of their entire business venture.

Partnership lawsuits require plaintiffs to prove they fulfilled their duties while the other party failed to fulfill his or her duties. The failure to fulfill their commercial obligation has to lead to the plaintiff (or the company itself) suffering a monetary loss.

Partnership Claims

First, we must confirm what the terms and protections of the partnerships entail. Precisely written partnership agreements can help avoid disputes by defining the proportion of shares and the partnership’s decision-making process. Ideally, there are no implied understandings between the partners, since those usually create confusion. Managing all expectations between partners usually alleviates interpersonal friction.

The true nature of the dispute at issue is often complicated and requires attention to detail. When working through a partnership dispute, it is important to determine the desired end-goal. If one partner defrauded the company through embezzlement or misallocation of resources, then recovering those financial damages is necessary. If irreconcilable differences prevent the business partnership from continuing, then business dissolution or a buyout could suffice to appease both parties.

Your Rights in Partnership Disputes

In a general partnership, profits are shared, but so are risks of loss and liability. Other partnerships are structured so they provide additional liability protections for partners. The more time spent in conflict with your business partner, the more money your company is losing.

What’s most important in a partnership dispute is to resolve the disagreement as quickly and with as minimal disruption as possible. Mediation and arbitration are also helpful paths when obtaining resolution. Given the history of most commercial partnerships, resolving disputes quickly and harmoniously has proven to be the most cost-effective course of action for the business.

Free Partnership Lawsuit Case Review

Call today for your initial free consultation with a partnership dispute attorney, please call 713-574-7616