When do you need a partnership lawyer for your business?
If you are a partnership experiencing disputes, it is crucial to consult with partnership dispute litigation lawyers to protect your business interests. Our partnership dispute lawyers have experience handling all types of disputes, including breach of fiduciary duties, misappropriation of business opportunities, minority rights violations, fraud, embezzlement, and errors and omissions in partnership agreements. We understand the importance of resolving partnership disputes quickly and effectively to minimize business disruption. Contact us today for a consultation.
What are Common Partnership Disputes Where Business Lawyers Can Help?
Partnership disputes commonly occur during operating the business. Perhaps one partner believes they deserve more and embezzled company money, or they act in a hostile and oppressive way toward their minority interest holding partners. Often we see self-dealing and breaches of fiduciary duties.
Common partnership disputes where business attorneys can help are:
- Breaches of fiduciary duty
- Separation or dissolution disputes
- self-dealing a/k/a conflict of interest
- Minority rights violations
- Errors and omissions in the partnership agreement
- Oppression disputes for minority ownership rights
- Misappropriation of business opportunity
Breach of Contract Disputes
Business partners have default rules of conduct set by statute, which can be modified by express contracts with the partners and the business. For example, owners of a Limited Liability Company (LLC) have an operating agreement that indicates the duties business partners owe to one another. Violating the operating agreement can lead to breach of contract lawsuits between partners that dispute how a company is operating its business, or business of the equity holders that may be competing with the partner’s business.
Common partnership disputes from contracts include:
- operating agreements
- partnership agreements
- employment contracts
- non-disclosure agreements
- non-circumvention agreements
- non-compete agreements.
Misappropriation of Partnership Assets
Another large area of litigation between business partners centers on company money, or other assets, being wrongfully taken by a partner.
These can be self-dealing cases of conversion of company money into personal accounts, or embezzling the company money. A business lawyer can file lawsuits on the partner’s and perhaps even vicariously on the company’s behalf to recover the converted or embezzled funds.
If you believe your partnership is experiencing embezzlement, it is important to consult with an experienced partnership dispute lawyer right away. Our lawyers have years of experience resolving partnership disputes and can help protect your business interests.
Breaches of Fiduciary Duties between Partners
Partnership disputes can arise from a breach of fiduciary duties. A fiduciary duty is a legal obligation that requires one party to act in the best interests of another party. In a partnership, the fiduciary duty applies to the partnership as a whole, as well as to each partner individually. A breach of fiduciary duty can occur when a partner fails to act in the best interests of the partnership or of other partners. This can lead to disputes among partners and can seriously damage the partnership.
Fiduciary duties are like an ‘Old Car’
Fiduciary duties between partners can be set by default under that state statutes governing the LLC, or partnership or corporation. Trying to remember the common fiduciary duties that managers of an LLC, or directors of a corporation, or general partners, owe to their company traditionally include:
- Reasonable Care & Diligence.
As you can see, these duties spell out ‘OLD CAR.’
Examples of breaches of fiduciary duties happen when the manager of a company acts to benefit themselves over their company, unless the partnership agreement expressly modifies the fiduciary duties that are owed between the partners.
If you believe your partnership is experiencing a breach of fiduciary duty, it is important to consult with an experienced partnership dispute lawyer right away. Our lawyers have years of experience resolving partnership disputes and can help protect your business interests.
Best Partnership Dispute Lawyer Near Me
If you are starting a partnership, have questions about partnership issues, or have become involved in a dispute with your partners, you should consider reaching out to an experienced partnership dispute lawyer. A partnership dispute needs to be handled as quickly and as effectively as possible to minimize disruption. Our lawyers have years of experience resolving partnership disputes and can help protect your business interests.
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