Litigation for Partnership & Corporate Business Disputes
Partnership disputes can not only be financially challenging, but can also be emotionally charged situations. Oftentimes, partners may not be thinking clearly and tend to make reactive emotional decisions rather than purely financial decisions as they would with other types of business disputes. For this reason, partnership disputes often require detailed financial analysis from a professional attorney or accountant before they can be resolved.
It is also usually helpful to seek the counsel of an independent third party, such as a law firm, to eliminate the emotional interaction between partners locked in a protracted dispute. If you are involved in, or anticipating, a partnership dispute, the experienced litigation attorneys at McFarlin LLP can represent your interests and protect your rights, beginning with a call to (888) 728-0044.
Fiduciary Duties of Partners
Although many partnerships begin informally between friends, the fiduciary duties of partners to one another are well established and highly enforceable under California law. Partners must deal with each other honestly and in a straightforward fashion. Disputes often arise when the partner overseeing day-to-day operations of the business or real estate venture fails to provide and account for distributions to the other partner(s). Obviously, just because one partner is primarily in control of the bank account and financial transactions does not entitle him or her to hide or misappropriate partnership funds. This obligation to the other partners is a fiduciary duty which must be respected. If you feel your partner has failed to abide by his or her fiduciary duty, or you have been accused by others of misappropriating partnership funds, it is critical you consult with a partnership dispute attorney at the earliest stage possible.
Partnership Dispute Resolution or Dissolution
Partnership disputes are often the result of personality conflicts rather than true financial disagreements. As long as the partners are not accusing each other of misappropriating funds, partners typically have the same goals and objectives: to make money together.
When the partnership dispute is the result if personal disagreements or conflicts, they can often be resolved quickly by a third party separating the partners and analyzing each partner’s issues with the other individually. If negotiations do break down, having an experienced attorney to discuss partnership buyout and dissolution procedures is also critical. Frequently, the outcome of disputes or the result of a dissolution will be spelled out in the partnership agreement itself or other agreements between the parties. Typically, a dissolution provision and a dispute resolution provision are critical elements of a partnership agreement. In nearly all partnership dispute situations, a voluntary, amicable resolution is far less disruptive and less expensive than litigation.
Litigation for Disputes Between Business Partners
When a partnership dispute cannot be resolved through counseling or dissolution, the result can be a partnership dispute lawsuit. This type of lawsuit is similar to other business litigation and is first governed by the terms of the partnership agreement and contract law. When the partnership agreement is silent on important terms, or no partnership agreement exists, the matter can be more complicated and is left to the California Civil Code. Litigating a partnership dispute can be highly disruptive to business operations. However, when fundamental differences between partners or corporate shareholders exist, it is sometimes necessary.
Contact McFarlin LLP Today for a Free Consultation
The partnership dispute attorneys at McFarlin LLP are uniquely qualified to take on such matter with extensive experience in corporate, contract, and partnership law, as well as litigation expertise. Applying corporate and partnership law in a litigation matter is the domain of only the most highly qualified litigators and premier law firms. An individual attorney or very small firm can easily become overwhelmed by such matters to the detriment of clients. To speak with a premier attorney in the partnership dispute field, call McFarlin LLP today for a free case evaluation and honest analysis. You will find our billing rates are much more affordable than most other highly qualified firms in California. Call us today at (888) 728-0044.