Legal Blogs

How Do I Resolve a Partnership Dispute in California?

A partnership allows you to join forces and combine talents with someone else to create a strong business. However, it is imperative that partners work well together and have a plan to move the business forward cooperatively.  In some cases, partners enter into a business agreement with the best of intentions but disputes can arise if the partners have different ideas about what is right for the business. business dispute

When a disagreement arises, it is important to understand the options available to resolve a partnership dispute in California. There are different approaches you can take to resolving the conflict, but you should always act with the long-term health of the business as your primary focus. An experienced Irvine, CA business law professional can help you to explore your options and find the best way of solving the conflict. Call Brown & Charbonneau, LLP today to schedule a consultation and learn more about how a lawyer can help you.

Resolving a Partnership Dispute in California

When you and your business partner become involved in a partnership dispute in California, the first step in solving the problem is to refer to your partnership agreement. This agreement should have been created when you first started the company. Ideally, it will provide comprehensive information about the business plan and about each partners role within the organization. If the agreement delegates a particular responsibility or decision-making authority to one of the partners on the disputed matter, then that partner will make the decision.  In any situation where the agreement outlines a solution, following the contract is your best option.

If referencing the partnership agreement does not fully resolve your dispute, then consider other documents that were created when the business first started. For example, you can refer to employment agreements, which may provide clarity on the job descriptions of each of the partners.  Review these documents carefully together to try to find the right solution that is in keeping with achieving the goals you have outlined for your organization.

Unfortunately, sometimes reviewing your contractual agreements does not resolve a partnership dispute in California. When this occurs, you should consider mediation or arbitration as alternatives to litigation. Mediation and arbitration both keep the disagreement out of the courtroom, which is important since you and your partner will need to continue to work together and do not want to turn your relationship into an adversarial one. Mediation generally tends to allow you to take the best and most cooperative approach to resolving your disagreement and is often the best choice for resolving your problems.

Only if these steps fail should you consider litigation to resolve your partnership dispute. There are a variety of different types of civil case you can bring against your partner, including a claim for breach of contract or for breach of fiduciary duty to the company. However, suing your business partner or turning to a judge to resolve your dispute can often undermine your working relationship and make it difficult for the business to continue.

Brown & Charbonneau, LLP can provide you with assistance in finding the best ways to resolve your disagreement when you are involved in a partnership dispute in California. Contact an Irvine, CA business law professional today to learn more.