Whenever two or more people decide to engage in a business as co-owners, a partnership is created. A partnership is a legal entity that is separate from the individual partners. Partners have fiduciary duties to each other but may not agree on what is best for the business. Thus, disagreements are quite common. Disagreements can be personal or business related, and may result in extensive litigation. Common disagreements include personality conflicts, accusations of mismanagement, confusion of authority, breach of fiduciary duty, disagreements over the use of funds and disputes over the business’ goals.
In the worst cases, the business collapses and is left in financial ruins. In those situations, the owners may be left with unresolved debts, and the employees left without jobs. However, there are paths to solutions that may not damage the entire business. Quicker resolutions may allow the business to continue normal operation.
The best way to encourage fast resolutions, is to have a well-drafted partnership agreement that addresses key issues. Our corporate attorneys are experienced in drafting such agreements, including provisions regarding the operating and financial responsibilities of each partner, the decision-making process, provisions for dissolving the partnership, and provisions for potential future expansion.
However, even with partnership agreements, litigation often arises. Our team of litigating attorneys are experienced in bench and jury trials, arbitration, and mediation. More importantly, our attorneys are experienced in negotiating amicably to resolve issues before escalating to litigation, which will drive up costs for all the parties involved.
Our attorneys can assist with asset division, buy-sell agreements including company valuation, , release of trade secrets, release of intellectual property rights, dissolution, and litigating security fraud, corporate misconduct, and breaches of fiduciary duty.