Protecting Your Business

Methods Of Handling Partnership Disputes

On Behalf of | Feb 3, 2022 | Business Litigation |

Business partnerships are commonly likened to a marriage, where those involved have close contact with one another on a daily basis as they work towards a shared goal. In a partnership, it is extremely important to delineate the rights, benefits, and responsibilities of each person in a partnership agreement so that everyone can have reasonable expectations of how the relationship will work. These same rights, benefits, and responsibilities can change, however, as the business grows and evolves. Other changes can occur as well which may not have been anticipated when the opening agreements were made or one of the partners may feel the other is not living up to his or her responsibilities. Often, these varying changes in the business itself as well as the attitudes of those involved can bring about disagreements and disputes which can have an enormous impact on the future and viability of the whole operation.

Partnership disputes can be based on such areas as financial arrangements, profit-sharing, business debt, the direction of the company, expansion, employment problems, or retirement issues. Other personal problems can arise that negatively impact the partnership such as personal financial difficulties, marriage difficulties, divorce, illnesses, injuries, and more. When these disputes occur, partners need to find solutions for handling them so that the overall business operation is not threatened. Mediation is one way to do so which keeps the partners in control of the results and out of expensive courtroom litigation, which should only be used as a last resort.

The Matthews Law Firm focuses on business law in the greater Los Angeles area, representing clients in business litigation matters and providing mediation services. When a partnership dispute occurs, mediation through an impartial third party may be the answer to sorting out the problem. The partnership agreement may need to be amended so as to reflect any new agreements. These are services that a business law attorney at the firm can offer after evaluating the situation.

With more than 20 years of legal experience in business law matters, disputes, and litigation, Attorney Art Matthews and his staff are more than adept at helping you resolve any dispute you and your business partner may not be able to handle alone. Contact the firm to schedule a consultation about your partnership or other business dispute and learn more about the options available to you today.