Business Partnership Disputes In California
Business partnerships can be rewarding but also challenging, especially when a partnership dispute arises. The disputes may lead to decreased productivity, financial loss or even dissolution of the partnership. Resolving these conflicts quickly and fairly becomes crucial.
At McMurray Henriks, LLP, our partnership disputes lawyers can help you with the full spectrum of business partnership issues from partnership agreement reviews to the death of a partner and every issue in between, including:
- Profits and losses: Disagreements on the division of how profits and losses among partners. Sometimes, this is due to differing interpretations of the partnership agreement.
- Fund misappropriation: When a partner accuses another of using partnership funds for personal use or unauthorized purposes, leading to trust issues and financial discrepancies.
- Breach of fiduciary duty: Occurs when a partner may have acted in their own interest rather than the partnership’s, violating the duty of loyalty and care owed to the partnership.
- A partner’s divorce: A partner’s divorce may lead to disputes if the ex-spouse claims an interest in the partnership, affecting ownership and operational dynamics.
- Financial decisions: Conflicts arise over how financial resources should be allocated or invested, reflecting differing visions or risk tolerances among partners.
- Percentage of ownership: Disputes regarding each partner’s share in the business, which can impact decision-making power, profit distribution, and responsibilities.
- Partner authority: Conflicts about the extent of each partner’s decision-making power and authority within the partnership, potentially leading to operational inefficiencies.
- Management roles: Disagreements over the specific roles and responsibilities of each partner, which can cause confusion and conflict in business operations.
- Unmet goals: Disputes arising when the partnership fails to achieve its set objectives, leading to blame and differing opinions on future strategies.
- Death of a partner: Complications that arise in determining the succession plan, transfer of ownership, or the continuation of the partnership after a partner’s death.
Before litigating a dispute, we work to efficiently negotiate or enter into alternative dispute resolution for cost effective solutions. We help businesses prepare strong cases to present all relevant facts and evidence clearly. We are skilled at negotiating favorable terms and protecting the business’s interests. We will guide you on the best approach to resolve partnership disputes effectively. If a dispute does not resolve through ADR, our trial lawyers can seamlessly transition the case to court.
Alternative Dispute Resolution: Efficient Solutions for California Businesses
Engaging in alternative dispute resolution (ADR) for resolving partnership disputes offers several benefits for businesses in California, including cost savings, efficiency and confidentiality. Saving time and money can also reduce stress and preserve business relationships. ADR may include mediation, arbitration or negotiation, all of which aim to resolve conflicts outside of traditional courtrooms.
Businesses use mediation when they want a neutral third party to help them reach an agreement. Mediation allows both sides to discuss their issues openly. The mediator does not make decisions but helps parties find common ground.
Arbitration involves a neutral party or parties called an arbitrator who listens to the information both sides provide and makes a binding decision. Arbitration can be faster than court trials and offers privacy since it does not take place in public courts. Businesses often prefer arbitration for its efficiency and confidentiality.
Negotiation is the simplest form of ADR. Parties directly communicate to settle their dispute without involving third parties. This method allows for flexible solutions tailored to specific needs.
At McMurray Henriks, LLP, our trial lawyers have extensive experience in both ADR and court settings. We understand the complexities of legal disputes and can provide valuable advice and relentless representation.
Do We Need A Lawyer To Dissolve Our Business Partnership In California?
Dissolving a business partnership involves partners reviewing the partnership agreement. This document usually outlines the procedures for dissolution. If no agreement exists, California law provides guidelines to follow. Partners need to settle all debts and distribute any remaining assets. They must also notify creditors, customers and employees about the dissolution.
In California, you are not legally required to have a lawyer to dissolve a business partnership, but it is often a good idea to consult one. Here are a few reasons why:
- Legal advice: Our lawyers can provide you with legal advice specific to your situation, ensuring that you comply with all relevant laws and regulations
- Drafting documents: We can prepare or review the necessary documents, such as a dissolution agreement, which can protect all partners’ interests
- Dispute resolution: We can help mediate and find a fair resolution if there are lingering disagreements between partners
- Filing requirements: We are here to timely complete filings with state and local agencies to avoid future legal issues
While it is possible to handle the dissolution process yourself, we can help you reduce errors and make the transition a smoother one.
Speak To An Experienced Partnership Dispute Lawyer
Emotions often run high during disputes, making it difficult for partners to think clearly. Hiring an experienced trial lawyer may be necessary to mitigate risk of reputation damage and financial losses. At McMurray Henriks, LLP, our objective advice reduces emotional decision making. Our lawyers offer sound counsel and focus on finding practical solutions. This objectivity helps in reaching a fair settlement so you can move forward in confidence.
Our trial lawyers are ready to take the conflict into court if necessary. When a case goes to trial, you will have an experienced lawyer with a proven record of success. Call 323-931-6200 in Los Angeles or send us an email for a consultation.