Partnership Dispute Lawyers in Sacramento
Partners in a business venture often spend a significant amount of time together and know each other very well. But that familiarity can make a dissolution exceptionally painful. Some of the most successful enterprises began with friendships between like-minded people who shared a vision. A partnership can potentially be one of the most valued connections a person has. If you are involved in a partnership dispute, contact an experienced partnership dispute attorney in Sacramento, CA for a free case evaluation.
However, even the closest bonds meet stressful times, and in some cases, those ties will break and the people involved must go their separate ways. In the business world, this can mean damaged reputations, employees potentially losing their jobs, or a messy public scandal.
Identify the Causes
Before partners call it quits, they should determine the causes of the dispute, consider possible solutions, and attempt to resolve the situation before is escalates into an ugly ordeal. The majority of disagreements between business partners are caused by the following:
- The original partnership agreement is flawed. The agreement may not have fully or properly addressed all necessary contingencies. Additionally, partners should detail the implicit understandings between each other to prevent future disagreements. They must be fully aware of what to expect from the agreement.
- Disagreements arise about the nature or future of the business. The partners may have different perceptions about their current corporate formation and or operating structures or the direction their companies should go.
- Overt misuses of position occur. One or more partners may have acted against the interest of the company for any number of reasons, including personal gain. This could include embezzlement or other misappropriation of funds, but it could also extend to overstepping accepted boundaries or unsound commercial decisions.
- One of the partners decides to leave, for any reason. In some situations, a partner may feel edged out or excluded from the company’s operations. If a partner dies, it can also lead to a dispute in the succession of his or her stake.
Explore Options for Resolutions
In some cases, the partners may decide to adjust their business roles. One may want to relinquish a portion of his or her control or responsibilities, for example, rather than leave entirely. The partners may amend the relationship in an agreeable way so the business can move on from the dispute and continue operations. Negotiating the partnership agreement may be a viable way to restore operations. Bear in mind, however, that a partnership dispute rarely affects only the partners. Other possible complications can upset the business, including:
- The workforce may divide, with factions that form in support of the opposing leaders. This can lead to a number of negative incidents—possibly even deliberate sabotage of the company’s operations to strengthen the position of one side over the other.
- The partners may not be the only ones to suffer financial strain. If the business fails as a result of the stresses caused or the partners close operations entirely, employees will lose their jobs and livelihoods.
- Tense outside relationships with lenders, contractors, and suppliers. These parties may be reluctant to continue doing business with a company in the midst of a partnership dispute.
- Any claims made by the partners against each other could lead to additional entanglements with tax officials and supervising agencies or even criminal investigations.
An expert legal team can assist partnership disputes as amicably and painlessly as possible for all parties involved. The Sacramento partnership dispute attorneys of the Boyd Law Firm in Sacramento have the experience and skill to thoroughly explore every possible option and outcome of a partnership dispute. Long-term partnership battles can destroy a company, so if business litigation is necessary, we can navigate a court battle to a successful ruling. If there is an opportunity for a swift and workable settlement, Boyd Law will help secure it.