Business partnerships require people to work together for a common interest. Each partner may have their own view of what is best for either the business or their own personal interest. Partnership disputes can be dangerous because they can mean liability and perhaps even the end of the business.
When you are involved in a partnership dispute, the first thing to review is the actual partnership agreement. You would have certain rights under the agreement. The document will have procedures to follow in the event of a disagreement. If the case goes to court, the judge would look first at the partnership agreement.
You are always better off trying to speak with the other partner to reach an agreement or otherwise resolve the dispute. Litigation can be expensive and time-consuming. Your partnership may not even survive, and the judge could order it to be dissolved. Thus, it is always better to talk first. If you and the other partners have difficulty communicating on your own, you should consider hiring a mediator to help facilitate discussion.
However, you may need to be prepared to immediately go to court. You are bound by the actions of another partner, meaning that you could be personally liable for what they do. Therefore, what the other partner does in the midst of the dispute can affect you financially.
In some cases, you may be unable to resolve the dispute. Then, one partner may try to freeze out the other. The partners may agree to sell the company and divide the proceeds.
Contact a Los Angeles Partnership Disputes Attorney
If you are involved in a partnership dispute, you need the help of an experienced attorney. Contact the Law Office of Alan J Carnegie today by sending us a message online or calling us at 877.261.4456.