Partnership Disputes
Partnerships are among the most utilized business formations in the United States today. At their most basic, partnerships involve two or more people conducting some type of business for a profit. Partnerships can be created by express agreement but also may exist as implied partnerships based on the conduct of the parties. Additionally, there can be different varieties of partnerships, including general partnerships, limited partnerships, or limited liability partnerships. While partnerships can make sense for a lot of businesses, one of their main drawbacks is a lack of personal liability protection for general partners for business debts. In addition, partners can be legally bound by the acts of other partners that occur without their consent or knowledge in many cases.
Partnership disputes are bound to arise and many can be resolved without the intervention of a lawyer or the courts. Sometimes, however, the assistance of an experienced attorney can help avoid a dispute before it arises and, when necessary, ensure that any dispute is resolved in a way most favorable to your position.
Partnership Disputes Can Arise in a Variety of Ways
A partnership dispute has the potential to have a significant impact on a business’s profitability and the morale of any employees that the partnership may have. As a result, it is important to resolve these disputes as quickly and with as little disruption to the normal operation of the partnership as possible. There are many different ways in which a partnership dispute may arise. Some of the kinds of disputes that our attorneys routinely handle include the following:
- Negligent management
- Terms of dissolution
- Breach of fiduciary duty
- Breach of non-compete agreements
- Self-dealing
- Breach of non-disclosure agreements
- Misappropriation of assets
- Fraud
- Partnership agreement disputes
- Asset division
In many instances, retaining legal counsel before a partnership dispute arises is the best way to avoid conflict at a later time. By consulting an attorney during partnership formation, you can ensure that your partnership agreement is well-drafted and addresses all of the various issues that may arise in the course of business. In some cases, a lawyer will alert potential partners to potential issues that they had not even considered prior to talking to an attorney. The initial investment associated with consulting with an attorney is usual far offset by the money that you will save by not having to go through costly and time-consuming litigation that could potentially destroy your business.
Let The Casper Firm Help You
Partnership disputes can escalate quickly and often have the potential to derail an otherwise lucrative business venture. As a result, anyone who believes that a dispute may be forming or who is currently involved in a dispute with his or her partners should retain legal counsel as soon as possible. In many cases, the assistance of an attorney can help resolve partnership disputes informally before litigation is required. If you do need to go to court, the representation of an attorney is essential. To schedule a free consultation with one of our lawyers, call The Casper Firm today at 410-989-5097.