Business partners, no matter how close or generally cooperative, sometimes hit snags in their professional and private relationships. What seem at first to be minor disagreements can sometimes morph into serious disputes that demand resolution. If you find that your business partnership is no longer running smoothly, now is the time to contact a strong business attorney experienced in dispute resolution. If your business is on Long Island or in one of the five boroughs of New York City, Kohan Law Group in Manhasset is the place to call.
Our legal team is both diplomatic and determined. We have helped numerous clients come to successful compromises with their partners, either through nuanced negotiations or strategic litigation to protect the financial well-being of their business and their own best interests.
What Our Dispute Attorneys Do To Settle Partnership Disputes
Business partners, like newlyweds, do not start out expecting trouble. Most go into their combined venture in agreement about structure, employment policies, and pathways to success. Nonetheless, as time passes and circumstances change, it is not uncommon for partners to begin questioning one another’s decisions and overall visions for the future.
Some disputes can be easily settled between the two partners themselves or through mediation or arbitration. However, in some cases, especially those that involve one partner accusing the other of mismanagement or misconduct, partnership disputes require litigation. Either way, the savvy litigation attorneys at Kohan Law Group are well-positioned to help you move forward.
During an initial consultation, we will listen carefully to the particulars of your case and determine whether your partnership dispute can be handled out of court or requires a trial. Most often, if one partner is accused of misappropriating funds or another breach of fiduciary duty, litigation will be necessary.
Fortunately, Kohan Law Group has the know-how to resolve all types of partnership disputes, both in and out of court, and an impressive record of successful outcomes.
Common Causes of Partnership Disputes
Although every partnership dispute has unique characteristics, the majority fit into one of the following categories:
Balance of Power Issues
In many cases, one partner feels that the distribution of authority in the partnership is unequal and that the other partner frequently overrides their decisions. While some decisions deemed unfair involve major employment or supply issues, others may seem petty. Nevertheless, decisions about office decor or meeting protocol may represent an important imbalance to the complaining party, and in some cases are the final straw.
Like all relationships, no matter how seemingly well-defined, business partnerships can become untenable at an emotional level if one partner feels demeaned or disrespected.
Concerns That Workloads Are Unequal
It is not unusual for one partner to feel that they are working longer hours, handling more difficult or tedious tasks, or taking less time off than their partner or that their partner is being careless or sloppy in their work habits.
This sense of unfairness, if not promptly addressed, can grow into a serious conflict, interfering with business productivity and profit, and making once congenial partners opposing parties in a courtroom battle. It is always wise to consult with a knowledgeable business attorney before an argument threatens to become a conflagration.
Disagreements About How Profits Should Be Handled
Partners often disagree about whether distributing profits or investing them will be best for the company. One partner may want to upgrade the structure, furnishings, or equipment of the business; the other may want to expand the workforce. One may feel strongly that the outdated computers must be replaced, while the other may be convinced that the money will be better spent on more aggressive marketing.
With the help of one of our experienced partnership dispute attorneys, depending on circumstances and personalities, any of the above disputes may be resolved through negotiation alone. Frequently, however, mediation or arbitration provides the necessary structure for reaching a workable compromise. In some situations, when the partners’ goals for the company have hopelessly diverged, the partnership may have to be dissolved.
Breaches of Contract
One primary reason for partnership disputes is that one partner has breached the contract that connects them. Because carefully wording the document so that it is clear and unambiguous is so important, at Kohan Law Group we are meticulous in creating partnership contracts, always including a protective clause with directives outlining how future disputes will be resolved. If your partner has breached the contract or accused you of doing so, our sharp attorneys will find a way to handle it as expeditiously as possible.
Accusations of Financial Misconduct
While some disputes are rooted in abrasive attitudes and differing concepts, those that begin with suspicions of financial misconduct are typically more serious, most often leading to litigation. Whether you believe that your partner is misappropriating funds or you have been accused of stealing from your shared enterprise, you require the services of one of our experienced attorneys to see you through.
All of our lawyers are well-schooled and well-practiced in litigation involving:
- Claiming false expenses
- Defamation of the other partner
- Embezzlement or misappropriation of funds
- Falsification of financial records, receipts, invoices
- Misuse of trade secrets
- Using inventory for personal gain
- Violation of a non-compete agreement
If it becomes necessary, we will work to dissolve your partnership with as little stress as possible and to make sure the assets of your business are fairly divided.
Contact Our Skilled Partnership Dispute Attorneys Today
Partnership disputes are not rare, but, with the help of our talented attorneys, they can be settled while keeping your business interests intact. Our diplomatic and negotiation skills can often resolve issues out of court, but we are always prepared to fight vigorously for your rights at trial.
We have the legal aptitudes you require and will investigate your case thoroughly, gathering and examining evidence, interviewing witnesses, and preparing a powerful strategy to prove your case or defend your rights and reputation. Contact us now. You can depend on us to always treat you with respect and handle your case with discretion.