Business owners often face numerous challenges that can threaten their success. One of the most common challenges is a partnership dispute. Businesses are valuable assets, and when partners cannot resolve their differences, it can negatively impact the company’s operations.
Here, we will discuss some common partnership disputes, the methods often used to resolve such disputes, and how a knowledgeable business litigation attorney can help to protect your interests.
Common Partnership Disputes
Some common disputes that arise in partnerships include:
- Fiduciary duty disputes. Business owners may enter into a dispute with a partner for failing to perform their obligations on behalf of the company’s best interests. For example, one partner may claim that another partner breached their fiduciary duty by making unauthorized investments. As a result, that individual may have harmed the company’s interests if the investment proved costly or otherwise harmful.
- Breach of contract issues. Partners who have entered into a contractual agreement may file suit against one another if one party breaches its obligations under that contract.
- Disputes over management rights and the use of resources. There could be disagreement over who controls key decisions, such as hiring new employees and making major purchases.
- Disputes over profit sharing. In some cases, one partner may believe that his share of profits is too low compared with other partners. They may argue that their contributions are more significant and, therefore, they deserve more compensation, while the other partner disagrees.
- Failure to allocate duties fairly. Partners may have agreed to split the workload and participation in the business’s operation in a certain way. Conflict may arise if either partner believes the work is not being divided equitably.
How Partnership Disputes May Be Resolved
There are several ways that parties can resolve a partnership dispute. A knowledgeable business attorney can help you decide which option is most beneficial in your specific circumstances.
- Negotiation and mediation. Negotiation and mediation allow both sides to come together to reach an agreement on the matter at hand. With mediation, a neutral third party will help the partners reach fair conclusions.
- Legal proceedings. If negotiation fails, legal proceedings may be necessary to resolve the dispute. In the event of a trial, having the representation of a business litigation attorney is vital as they will help you prepare and effectively argue on your behalf.
- Buyout. If one partner wants out of the business relationship, they may offer to buy out the other partner’s interest. A skilled attorney can help to walk you through the process to help ensure the agreement is favorable for you.
Contact a Skilled Business Attorney in Atlanta, GA
Hasson Legal Group, LLP assists business owners in Atlanta, GA, in addressing complex legal issues such as partnership disputes. Our attorneys have considerable experience resolving disputes through negotiation, mediation, and effective litigation in state and federal courts.
If you a facing a partnership dispute, call us at (678) 701-2869 to learn what we can do to help you get the best results.
We serve the Atlanta, GA, area.