Pasadena Partnership Dispute Lawyer
Business disputes do not only happen with counterparties, contractors, and clients. Unfortunately, partners in a business venture will often end up fighting amongst themselves regarding entity governance, employment concerns, profit sharing, and asset distribution upon business dissolution, among other issues. When you have an internal partnership dispute, it is vital to retain an experienced and knowledgeable business litigation attorney who can advise you not only as to the legal issues raised in the dispute but who also understands the underlying business interests. Pasadena business law attorney Andrew Ritholz can help you mediate and resolve partnership dispute issues in a way that protects and advances your business interests while minimizing your liability.
Common Causes of Partnership Disputes
Partnerships are not always easy. People often enter into business partnerships with friends or family and may not fully appreciate or account for the realities of running a business entity. Friends might even go into business with nothing more than a handshake, rather than creating a formal corporate entity and governing documents, trusting that their personal relationship will resolve any potential conflicts. When disagreements later arise, the partners may not be properly equipped to handle the dispute in the most efficient and appropriate manner.
Partnership disputes can arise, for example, due to the following reasons:
- Partners may have conflicting working styles or differing ultimate visions regarding the direction of the enterprise
- One partner may want to add a partner while the other does not
- A partner may be dishonest and mishandle business assets
- The partners may disagree about specific business ventures or real estate plans
- Cash flow shortages
- Financial pressure caused by change in economic and other circumstances in a partner’s personal life
- Opportunities for greater business success that might conflict with the current business direction
Business disputes are best resolved if there is a strong, clear partnership agreement or other governing document that lays out the rights and responsibilities of each party and that dictates how disputes will be resolved. Whether or not there is such a governing document, a dedicated California partnership dispute attorney can help partners mediate and negotiate through their differences, working out a cost-effective and efficient resolution where possible, and help dissolve the partnership in the proper manner if no other resolution can be reached.
Partnership Disputes Involve Complex Legal Issues
Business partnerships involve strict, complex fiduciary duties both shared among the partners and owed to each other, as well as those owed by the partners to the business, the employees, and any shareholders. Controlling partners must honestly account for income and expenses and must not take advantage of minority partners who may not be as involved in the day-to-day business or in a specific enterprise.
If you are experiencing a serious dispute in your partnership that is beginning to affect your business operations, it is vital that you immediately implement appropriate measures to protect both your business and your own interests. A bitter dispute can cause partners to fail in their fiduciary duties and obligations to each other, to the business, and to any shareholders, creating additional legal headaches as well as lost profits. It is necessary that you understand your rights and obligations and act accordingly.
If a partnership is going to be dissolved, there are strict procedures that must be followed according to California law and other applicable rules and regulations. Failing to comply with these procedures can expose the business and even the individual partners to significant liability. A qualified business dispute attorney can help ensure that you follow the letter of the law in effectuating your partnership dissolution, where necessary, and help you otherwise resolve your dispute in a way that avoids additional liability and protects your interests.
Contact a Pasadena Partnership Dispute Lawyer Today
If you have a potential or ongoing dispute with your business partner and are ready to learn how our Pasadena partner dispute attorney can assist you and your business, call us today for a free consultation. Andrew Ritholz is an experienced litigation attorney who will provide you with effective and compassionate legal representation through each stage of your case. Remember, oftentimes you pay nothing if we do not win your case.