Business Partnership Disputes Attorney in Irvine, California

No matter what line of work you’re in, or how big or small your business is, you know you need to constantly be looking out for your bottom line and addressing any potential issues before they escalate. This is especially true when it comes to problems that can lead to litigation or have already resulted in a lawsuit. In fact, studies have shown that 75% of small business owners are worried about facing an unfair lawsuit—and this fear isn’t totally unfounded. A lawsuit has the potential to cause tremendous damage not only to your business but to your personal reputation as well. When there’s an issue involving your business partner, things can become even more complicated. 
It’s important to reach out to a seasoned business litigation attorney when you’re facing legal troubles like this. For help in the Irvine, California area including Orange County, Los Angeles, Los Angeles County, San Diego, or San Diego County, get in touch with William B. Hanley, Attorney at Law

Common Causes of Partnership Disputes

Many businesspeople choose to start a new company along with partners. No matter how well-intentioned the partners are in the beginning, disagreements and disputes can crop up for any number of reasons. To a certain extent, you can only do so much to prevent a partnership dispute from occurring, and instead should focus your energy on putting into place protocols to deal with them when they inevitably arise. Some common partnership disputes include: 

  • Shareholder agreements 

  • Employment agreements 

  • Severance agreements 

  • Dissolution disputes 

  • Intellectual property disputes 

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Legal Claims in a Partnership Dispute

When these disputes happen, they can lead to litigation and other legal claims if they’re not addressed in a timely manner. You may have grounds for a legal claim if there’s been a partner breach of contract or a breach of fiduciary duties. In these cases, you may be able to sue your partner if they’ve acted in a negligent manner and violated the terms of a contract, non-disclosure agreement, or company bylaws. 

Resolving a Partnership Dispute

There are a few different ways to address a dispute like this. Ideally, the process for this should be included in your contracts or operating agreements. Here are some strategies you may be able to pursue with the guidance of an attorney: 

  • Partnership Mediation: A mediator can help keep conversations to resolve these disputes productive and on track, but they will not be tasked with making the final decision. Rather, they will help the partners themselves come to a consensus. 

  • Partnership Arbitration: Arbitration in a partnership dispute is another option like mediation, except an arbiter will eventually make a decision to resolve the dispute and the partners must abide by this decision. 

  • Partnership Dissolution: Finally, if no agreement can be reached, the partners may have to dissolve their business and go their separate ways.  

The Partnership Agreement

It’s impossible to prevent all disputes from happening, but a partnership agreement can provide a solid foundation for your business. Revising and drafting a new agreement after a dispute has occurred should always be done with the assistance of an experienced attorney. These kinds of agreements can even make your business and partnership stronger since you’ll have worked through tough issues and made changes to ensure your partnership is strong. A solid and well-written partnership agreement is at the heart of any successful business. When partners know what to expect as far as their role in the company goes, everyone is better able to focus on growing and strengthening the company.  

Of course, disputes do happen—and they may continue to happen, despite your best efforts. That’s where a skilled business litigation attorney comes into play. 

Business Partnership Disputes Attorney in Irvine, California

These kinds of issues can quickly become overwhelming, for you and your business. If you’re running a company in the Irvine area and you’d like to sit down with a detail-oriented attorney to discuss your concern about a partnership dispute, reach out to William B. Hanley, Attorney at Law to schedule a consultation.