Business romance. You meet that special someone and feel like you have a connection like you really see eye to eye and share a vision for a company.
So you partner with them, and the relationship grows into a successful business.
Unfortunately, nearly 80 percent of partnership disputes end up in divorce. That is worse than the divorce rate for marriages. So If you know a partnership is not working, it may be time to break up. That doesn't mean it will be easy; savage money disputes and tense legal battles could be part of the process. That is why you need an experienced business dispute lawyer on your side at the first sign of acrimony.
Facebook, the Beatles, Wordpress, The Los Angeles Dodgers, were all businesses that experienced partnership disputes. Partnership disputes occur when one partner has
- a different way of thinking for the company
- is not performing
- cash flow issues
- just wants out
- or when the company dissolves.
When any of these situations occur, disputes can be awkward, messy, and downright brutal. You need to protect your rights by finding out what options you have when you have a dispute with your partner.
Under New York law, business partners have fiduciary duties and obligations. These fiduciary duties not only touch the business but also outside opportunities that may be only marginally related to the business. It is important to understand your rights and obligations in relation to your business associates and partners.
If you are experiencing a serious dispute with your partner that is creating issues for your business operations, you must move immediately to secure your business and the equity interests that you have worked so long and hard to create.
You also must act quickly as the other partner may try to freeze you out. It is often much more difficult and costly to try to deal with a dispute once it has arisen rather than working around the problems initially. These could include:
- Claims for Breach of Fiduciary Duty – many partnership disputes involve a claim of breach of fiduciary duty against one or more of the partners. This can include breach of contract, fraud, and misuse of partnership funds.
- Misappropriation of Funds
- Control of the partnership
- Division of Assets
- Interference with a Contract
- Partnership Dissolution
- Divorce and Probate Disputes
- Removal of a Partner – removing one partner from a partnership can be legally complex.
- Real Estate Disputes
- Right to an Accounting
If you encounter a problem not covered in your partnership agreement, or if you don't have a partnership agreement, to begin with, you can still attempt to negotiate a compromise. Negotiation is about finding a solution you both can live with and we will fight to obtain the best result and will work with you to keep your legal costs reasonable. Mediation is another form of dispute resolution that could save you money.
If negotiation and mediation don't work, depending on the terms of your partnership agreement, we can represent you in either arbitration or litigation.
The Law Office of Frederic R. Abramson has over 20 years of experience dealing with partnership disputes. We will guide you through arbitration, mediation, and/or litigation. Feel free to call us 212-233-0666 or set up an immediate virtual consultation.
