Practical And Effective Resolutions To Partnership Disputes
Many entrepreneurs who go into business together discover at some point they have different objectives or philosophies about how to run the company. In some instances, one partner may discover that another is overstepping his or her authority or misusing company assets.
In a competitive environment, remaining focused on business strategy is essential. A drawn-out business dispute can cause partners to lose that focus and open the door for competitors to gain ground.
At Brudvik Law Office, we have extensive experience resolving business disputes, initiating or defending against litigation, and taking proactive measures to prevent future disagreements.
Causes Of Partnership Disputes
An argument between business partners can result from many types of disagreement. Some common reasons why business partners become embroiled in a dispute that requires legal resolution include:
- An accusation of mismanagement of assets
- An accusation of diverting business assets for personal use (embezzlement)
- An accusation of mishandling business opportunities
- Disagreement regarding executive compensation
- The addition of family members to the business
Our knowledgeable business law attorneys will review the facts of your dispute and work to resolve the disagreement in the most effective manner possible. Often, we help our clients resolve disputes without the need to litigate. Our lawyers are adept at leading negotiations or representing clients in third-party mediation or arbitration. We also are always prepared to advocate for a client in court if it is necessary.
One solution is to buy out a disruptive partner’s interest in the company. Sometimes, a partner may be involuntarily forced out of a business. We have experience creating buyouts and defending a business partner from being pushed out of a company.
Stopping Disputes Before They Happen
Of course, it’s best to prevent partnership disputes from ever occurring. This is accomplished with careful business formation when a partnership is created. We help business partners launch general partnerships, limited liability companies (LLCs), limited liability partnerships (LLPs), S-corps and more.