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How Can I Resolve a Dispute With My Business Partner?
While you may have begun your business partnership on the best of terms, over time, you and your partner may have serious disagreements about important issues. Perhaps you disagree on the business’s direction or how profits and losses should be distributed. Maybe one of you wants to dissolve or sell the business, and the other wants to continue running it. Or it could be that you no longer like or trust each other. These issues could have serious implications for the health and survival of the business. You do not need to have an all-or-nothing proposition, however. It is possible to resolve the dispute with your partner or, in the very least, to find a solution that works for the partners and the business. An experienced Fort Lauderdale, FL partnership dispute attorney can advise you on the best way to resolve your disagreement.
How Are Partnership Disputes Resolved?
A partnership is a legal business structure in which two or more partners run a business, usually under the terms of a partnership agreement. There are a few options for resolving a partnership dispute:
Mediation or Arbitration
Mediation offers a way for partners to resolve the dispute with the help of an impartial and experienced business mediator. The parties can communicate their concerns and arrive at creative solutions that offer a suitable compromise. Arbitration is another form of alternative dispute resolution that may be utilized to avoid litigation. It is more formal than mediation but not part of an official court proceeding.
Buy-Out
When partners cannot agree but one or more of them wishes to keep operating the business, the partners who want to keep the business running can choose to buy out the partners who do not wish to continue. This is usually done through a buy-sell agreement. The initial partnership agreement usually includes stipulations about the procedure for a buy-sell.
Dissolution of the Partnership
When partners cannot agree on anything except that they no longer want to continue with the business, they can agree to dissolve the partnership. With dissolution, the company ends its operations and the assets are distributed according to the company’s ownership.
Litigation
Litigation can be an effective tool to resolve partnership disputes when necessary. Through litigation, there are multiple ways that a dispute might be resolved. For example, it is possible to seek injunctive relief to put a stop to wrongful conduct such as a breach of contract that is harming the business. Monetary damages may also be available in a lawsuit for financial losses stemming from the partnership dispute. It is also possible to seek a judicial dissolution of the partnership, where the court dissolves the business.
Call a Fort Lauderdale, FL Business Lawyer
If you are having serious disagreements with your business partner, it is time to get advice from the experienced Broward County, FL partnership dispute attorney at The Elliot Legal Group, P.A.. Our law firm assists business owners with partnership disputes, advising on ways to resolve concerns amicably and representing clients in court if need be. Call us at 754-332-2101 for a consultation to discuss your concerns.
