When Do Partnership Disputes Lead to Business Litigation?

An Orange County business litigation attorney provides help in situations where a partnership dispute has arisen. An attorney can help you to determine what the best approach is to resolving the partnership dispute. In some cases, litigation may be the best approach, while in other situations there are better alternative solutions such as mediation or trying to find another amicable and non-litigious approach to resolving the disagreement. 

Brown & Charbonneau, LLP has provided extensive help to those who are involved in partnership disputes. We will work with you to protect the interests of your business while asserting your rights and doing everything possible to ensure you and your partner can continue operations. Give us a call at (866)237-8129 to find out more about the ways in which we can help you to resolve your partnership disputes.

When Partnership Disputes Result in Litigation

Partnership disputes can result in litigation when there are problems which cannot be resolved among the partners without involving the court system.

One common example of such a situation is when a breach of fiduciary duty occurs. Partners who are co-owners and involved in operating a business together have the highest legal duty to act in the best interests of the business. Self-dealing is not allowed, and no partner is permitted to enrich himself or herself at the expense of the company as a whole. If any partner fails to fulfill his fiduciary duty, then legal action can be taken to try to get the partner to repay what has been lost to the business.

Cases where any partner engages in fraud or embezzles money from the business are also examples of situations where litigation will likely arise. These actions are criminal actions, in addition to potentially giving rise to civil claims. It is rare or even impossible for situations like fraud or embezzlement to be able to be resolved amicably amongst the partners outside of the legal system.

These situations which end up in court are usually situations where the partnership is essentially over because the actions of the partners have made it impossible to continue working well together. If there is a way to salvage the partnership and allow the business to continue operations with the current partners involved, it is best to try to explore alternatives to litigation. An Orange County business litigation attorney can actually work with you to determine if there are better approaches than going to court.

Of course, an amicable resolution cannot necessarily be reached in every dispute, and there are certain situations where partners do go to court to ask the judge to make decisions on disagreements but then resume working together. Examples of such situations may include disagreements which cannot be resolved through the partnership agreement or through any employment agreements or other contracts that you may have signed. While it can be challenging to go through court action and then resume working with your partner once a judge has made a decision, it may be the only way to continue running a profitable business with your current partners.

Alternatives to Litigation for Partnership Disputes

If you wish to try to avoid litigation for partnership disputes, an Orange County business litigation attorney can help you to consider different approaches.

One option is to try to negotiate your own resolution by referring to things like your employment agreement or your partnership agreement. If your contract addresses the issue or determines who has authority on making a particular decision, then you will need to abide by your contract. Your attorney can assist you in trying to interpret your agreement if you and your partners are not certain exactly what the contract should mandate.

Your attorney can also discuss with you the option of working with a trained mediator who may be able to provide you with assistance in working out an amicable out-of-court resolution if you wish to avoid litigation so you can preserve your partnership.

Getting Help from An Orange County Business Litigation Attorney

An Orange County business litigation attorney can provide you with the assistance that you need to understand the different approaches to resolving partnership disputes. Your attorney can also help you to work with your partner to come to an agreement or can provide you with legal representation in court so you can protect your business interests. To find out more about the help that you can receive, give us a call at (866)237-8129 or contact us online to speak with a member of our legal team and learn more.