Handling Disputes Between Business Partners

Handling Disputes Between Business Partners

Handling Disputes Between Business Partners

Starting a company with one or more partners can be valuable, as partners can each use their strengths to help balance out each other’s weaknesses when it comes to business. However, there will always come a time when a partnership dispute arises on an issue related to the operations, finances, or leadership of the company.

When a partnership dispute is not properly addressed, it can have a detrimental effect on the entire business. It is important to handle these disputes in the most effective way possible with as little effect on or interruption to your business.

Look at your partnership agreement – Every partnership should have a carefully drafted partnership agreement, which advises how conflicts should be resolved, among many other things. Often, this agreement will provide enough guidance for the partners to settle their differences and move forward.

Negotiation or mediation – Often, a skilled business lawyer can examine the situation and help to offer suggestions about how to resolve the matter from a legal standpoint. If discussion and negotiation do not work, you may want to consider mediation, and your partnership agreement may even require an attempt at mediation.

Litigation or removal of a partner – If you cannot resolve the dispute, it can escalate to a legal claim in civil court. This is especially the case when one partner is suspected of wasting business assets, exposing trade secrets, or causing other losses for the business. If you simply have a bad partner and you do not see the situation improving, the partnership agreement should have specific instructions for the removal of the partner. You want to take action in a manner that preserves the company whenever possible.

Contact an Experienced Business Lawyer in Houston Today

Partnership disputes do not have to ruin your business, so you should call Houston business attorney Tim Sutherland to discuss any issues. Call 713.300.1946 or contact us online for help with any type of business-related legal matter.