Partnership Disputes: When Do I Need to Involve a Business Attorney?
Posted By Salvador Phillips, PLLC || Dec 6, 2017
Disputes between business partners can affect the daily operations of a successful company and can strain professional relationships. Partner disputes can sometimes be difficult to gauge, making it hard to know whether the dispute can be resolved informally or if it will require a lawsuit. Common partner disputes include:
- Inequality of work or pay
- Competing with the business
- Misappropriating business assets
- Failing to act as a fiduciary to the business and the partner.
In this blog, we explain how to determine if you need to hire an attorney for a partnership dispute.
Understanding the Dispute
It is important that you get a clear understanding of the issue at stake before you confront your business partner. You should read company documents like the shareholders agreement, partnership or LLC operating agreement, and formation documents. These documents can tell you who owns which aspects of the business and how the company is managed. Sometimes, these documents have provisions for dealing with business partner disputes.
Make sure that all of your legal obligations have been met before you confront your business partner. Perform all of your daily duties to the company and do not delete emails or records. You should then discuss the issue with your partner and attempt to come to an informal resolution.
If you and your partner can’t agree on ways to resolve the dispute, you should seek legal advice from an experienced business attorney. Look for a lawyer who is familiar with business law and has a reputation for resolving disputes quickly and efficiently. Explain all of the issue you and your partner have thoroughly and inform your attorney of the nature of your partnership.
Do you need help resolving a partnership dispute? Contact our Phoenix team of business lawyers to get started on your free consultation today.