Written By: Joseph J. Nardulli
Partnership disputes inevitably arise and can often be emotionally charged — especially when the partners involved are family members, or long-time friends or business associates. Although the reasons for partnership disputes can differ dramatically, the effects of the disputes can range from minor squabbles to a complete breakdown in the functioning of the partnership. When the partnership is a going business with significant assets and liabilities, a breakdown in the partnership can result in a severe blow to the economic stability of the partnership, and in some instances even to the financial well-being of the partners.
An effective plan of resolution is an important first step in handling most partnership disputes and preventing them from becoming worse situations for the partnership and the partners individually. Oftentimes partnership disputes concern the future of the partnership’s business; especially when one partner wants to grow the partnership’s business, and the other wants to be bought out or to liquidate and dissolve the partnership. Issues regarding breaches of fiduciary duty, disagreements regarding property ownership, and the partners’ rights under formal and informal partnership agreements will oftentimes arise.
Whatever form the partnership dispute takes, a thorough understanding of the law governing partnerships and the various tools available to resolve the dispute, is crucial to effectively resolve the partnership dispute in a positive and efficient manner. Although the specific remedies available to resolve a partnership dispute will depend on the individual facts and circumstances of each case, what is certain is that retaining a law firm, such as The Wolf Firm, whose attorneys are experienced in handling partnership disputes can be the most important step taken in attempting obtain a favorable resolution of the partnership dispute.