Business Partnership Disputes
Knowledgeable Legal Counsel To Handle Business Partnership Disputes
The attorneys at Marcus, Gould & Sussman, LLP, have assisted business owners and partners from the inception of companies and other types of business issues to company dissolution in New York. When it comes to handling business partnership disputes, we have a unique and comprehensive perspective of the legal issues.
We understand that any dispute or disagreement among business partners can lead to the dissolution of the partnership and the business itself. Therefore, we engage in thorough research of the origin of the dispute, analyze all the relevant documents and develop highly customized solutions. Our priority is to assist you in solving the current conflict you face and work on solutions that protect your interests and your business.
A Deep Understanding Of Your Interests And Expectations
Despite all the precautions taken to develop robust legal documents to regulate and establish your business as transparently as possible, disagreements and disputes may arise. Sometimes, partners have different visions about the direction a company should take. Perhaps there were misunderstandings about roles and responsibilities or property of business assets.
One of our goals as a law firm is finding alternative solutions to negotiate potential solutions that might be beneficial for all the parties involved. Otherwise, we are prepared to litigate and defend your rights, finances and business.
Other types of disputes we handle include:
- Fraudulent activity and lack of transparency in the business financial operations
- Lost business opportunities due to the intervention of a partner or partners
- Breach of contract and fiduciary duty, such as sharing trade secrets with competitors
- Disputes involving commercial real estate, among other real estate issues
- Disagreements about the division of assets throughout a business dissolution
From our office in White Plains, we will work on sophisticated solutions to negotiate your dispute or build a solid defense to address your legal issue. Our attorneys will diligently work on your legal concerns and assist you in making informed decisions.
Warning Signs Of A Potential Partnership Dispute
Partnership disputes can disrupt company operations and damage working relationships. You may need to take immediate steps to address the situation if you notice any of the potential warning signs below. Common indicators of a breakdown in a partnership include:
- Communication issues
- Lack of financial transparency
- Discrepancies in your goals for the organization
- A growing lack of trust
Any significant disruptions in your dynamic with your business partner can be indicative of bigger problems.
Watching for red flags in your partner’s behavior can help you take appropriate preventative action before the matter spirals out of control. Significant red flags include:
- Canceling or missing meetings
- Failing to fulfill contractual obligations
- Making unilateral decisions
- Engaging in hostile communications
- Reduced work attendance
Those warning signs can be indicative of a partner withdrawing from the business or attempting to hide their misconduct.
Many partnership issues have economic implications that can damage an organization’s solvency or the returns received by the partners. Financial red flags may include:
- Failure to make promised investments
- Withholding key financial details
- Awarding projects/contracts for personal gain
- Questionable expenses and reimbursement requests
- Missing assets or capital
These and other financial red flags require immediate action, as they can snowball into much more serious matters for the business.
Addressing Disputes In Different Business Arrangements
A dispute between members who operate a limited liability company (LLC) together may fall under the clear provisions outlined in the operating agreements. General partnerships are often easier to dissolve and may be at higher risk of a breach of duty due to a lack of clarity in the business formation paperwork.
Joint venture disputes can be especially challenging to navigate, as they involve two or more parties who do not necessarily have a long-term business relationship. A family business partnership dispute can be challenging to navigate, as the complexity of interpersonal relationships can influence business dynamics as well. In a 50/50 partnership where a dispute becomes a deadlock, the original agreement may outline how the partners can resolve the issue, such as working with a third-party mediator or an independent tie-breaker.
What To Expect When Resolving A Partnership Dispute
The costs and timeline for resolving a partnership dispute vary drastically. If there is a process outlined in an agreement, resolving the issue may be relatively fast and cost-effective. If the situation involves protracted negotiations and litigation, the dispute could require months to resolve and could generate tens of thousands of dollars in costs. Mediation and arbitration, when successful, are often faster and less costly than litigation.
Discuss Your Legal Concerns With Our Attorneys
Our lawyers will discuss your legal issue and options in a free 15-minute initial phone consultation. Call 914-370-4965 or fill out our secure online intake form with a brief explanation of your consultation.
