Disagreements are a normal part of life. When it comes to business partners having disagreements, it can lead to uncertain circumstances. A partnership dispute takes place when business partners want to dissolve their relationship as a result of a difference in opinions or goals. Losing trust or respect for your business partner can cause endless problems with your work relationship. As a result, you may seek legal guidance in solving a partnership dispute or dissolving the partnership in its entirety.
Our experienced Los Angeles business law attorneys at Leiva Law Firm have decades of experience handling partnership disputes for our clients across Southern California. Our team provides trusted and competent legal guidance to help you move forward after experiencing a disagreement or through the process of dissolving your partnership. If you are currently experiencing a partnership dispute, contact our law firm as soon as possible to see how we can help you.
Ways to Avoid Partnership Disputes
There are many instances where partners rather resolve their issues without having to take drastic measures. Although nothing is fool-proof, there are some ways you can try to avoid partnership disputes.
First, it is crucial that you have defined goals for your business from the beginning. When you establish your partnership, having the business goals on record can help keep you and your partners on track moving forward. When both partners are on the same page with regards to where the company is going, you will better be able to share the same vision with your company and work toward achieving the goals together.
Early on, you should establish business roles. It is crucial that you and your partners are aware of what roles you are to hold in your company, what each person’s responsibilities are, and what liability you each have. Knowing exactly what you are responsible for can help to avoid conflict, confusion, and anger.
If you do experience a dispute with your partner, it is important that you have a written agreement of what you intended for the business relationship to be from the beginning. Should any conflicts arise, it is important that you seek assistance from a professional who is experienced in the field of commercial litigation. Having an objective party evaluate your case and work to organize your affairs can help you and your partner immensely.
Do All Partnership Agreements Need to Be in Writing?
Although business owners have their own ideas pertaining to the best ways to operate their businesses, having agreements in writing can help you to avoid problems in the future. The very best way to ensure a smooth and functional partnership is to keep everything in writing. Verbal agreements between partners leave too much open to interpretation. By entering into a written agreement, with the assistance of a skilled and knowledgeable business law attorney in Los Angeles, you can better protect your rights and interests moving forward. Having an adequate partnership agreement can help to avoid partnership disputes. Should disputes arise, a well-written agreement that is clear and legal can help you obtain a quick and effective resolution for your partnership dispute.
Common Causes of Partnership Disputes
There are an array of topics covered under partnership disputes. In general, disputes can arise surrounding nearly any aspect of the business. Some of the most common causes of partnership disputes include:
- Arguments over the profits of a company
- Declines in revenues
- The difference in management style
- A difference of business styles and goals
- Insufficient partnership agreements
- The difference in opinions over the direction in which a business should go
- Shareholder agreements
Regardless of the cause of a dispute, it can have a devastating impact on your company and the ability for it to continue functioning. Quite often, disagreements between key business partners can cause problems surrounding those involved in making decisions. Disputes can evolve into much greater problems for businesses. Some more serious issues include:
- Trade secrets
- The dissolution of a business
- The breach of fiduciary duty
- Business disparagement
If you believe that one or more business partners are failing to uphold their duties to the company, it is crucial that you take immediate action. Investigating the issue as quickly as possible can help you resolve the dispute in a more beneficial way that does not impact your company’s bottom line. Working with a business lawyer in the Los Angeles area can help to ensure your rights and best interests are protected as you move forward.
Partnership Disputes we Help Our Clients Handle
Quite often, partners can have a difficult time determining their extent of liability. No person wants to assume unlimited liability of their company, but it is crucial that one or both partners do. Liability claims and various other issues often increase the likelihood that disputes will arise. Our team at Leiva Law Firm has extensive experience helping our clients handle various partnership disputes in manners that reflect their best interests and legal rights. Some of the issues we help our clients handle include disputes surrounding:
Contact Breaches: It is very common for one or both partners to engage in behaviors that violate clauses in their contracts. The fact that there can be different types of contracts and even multiple contracts in existence means that some actions partners perform may not align with what is expected of them.
Disclosing Sensitive Information: A variety of information shared between business partners should remain confidential. Under a confidentiality agreement, no information can be shared with any other party without the consent of both partners. When people or organizations violate the terms of their confidentiality agreement, it can arise to a partnership dispute.
Underperformance: It is crucial that each partner performs in a manner expected of them. When partners do not carry their weight within the company, and they fail to meet expectations, it can create losses or hazards for the company. As a result, partners often engage in disputes surrounding the performance of their partner.
Personal and Managerial Conflicts: There are many instances where partners disagree with things on a personal level. When partners let their disagreements entangle with business matters, it can lead to major disputes.
Our team at Leiva Law Firm has decades of experience helping clients handle disputes. We help our clients by reviewing their partnership agreements and helping them come to terms with the differences they have with their partners. When required, we help our clients navigate through the dissolution process in a way that allows them to move forward and reach their business goals. Contact our law firm today to see how we can help you.
Are All Partnership Disputes Handled in Court?
There are many types of partnership disputes that you can become involved in. The type of dispute you have with your partner can determine whether you will need to settle the issues inside or outside of the courtroom. Depending on the nature of the partnership dispute, whether there is a resolution process outlined in your partnership agreement, and what the parties prefer, you may be able to handle disputes through litigation or outside of a courtroom with an arbitration or mediation process. It is crucial that you choose the right method to handle your partnership disputes. Consulting with a knowledgeable attorney can help you better understand options available to you and what may be most appropriate moving forward.
Leiva Law Firm Can Help You
In an ideal world, you and your partner will always see eye to eye. Regrettably, this is not always the case. It is extremely common for business partners to disagree with how one or more partners performs within the company. In fact, the majority of partnerships in the country dissolve within the first five years of their existence. When it comes to dealing with partnership disputes, it is crucial that you seek the guidance of a skilled and knowledgeable legal team in your area. Being involved in a dispute can have a damaging impact on your company. For this reason, it is crucial that you contact a business attorney in Southern California to discuss options available to you.
You deserve the very best representation when it comes to handling partnership disputes that can have a critical impact on your company and essentially your livelihood. For this reason, it is crucial that you seek legal guidance from the Los Angeles business lawyers at Leiva Law Firm as soon as possible. Our team is available to review your case, work with various financial experts to gather evidence to present facts on your behalf while handling partnership disputes. Our team strives to help you obtain the best outcome as you move forward. Our legal staff will provide you with recommendations that fit your business goals and represent your best interests. If you are involved in a partnership dispute, whether big or small, contact our law firm at your earliest convenience. Call (818) 703-1777 to schedule a meeting with our team to discuss your case and determine the best route forward.