Business Partnership Disputes And Litigation
You may not be happy with your business partner; in fact, it may be so bad that one or both of you are thinking of leaving the company. This can be an extremely stressful and unfavourable position for you to be in, and it is of paramount importance that the business, the company and the reputation of anyone involved is preserved to the highest standards, where possible.
In the right circumstances, business partnership disputes can be resolved with the minimum amount of disruption to both the business and the partnership. However, this is not always the case, and sometimes the only option in a partnership dispute will be litigation.
Seeking legal advice at the earliest possible stage of business partnership disputes is highly advisable, so that each partner is aware of their rights and obligations. Two things can make the situation complicated, and lead to litigation being the only available option. Firstly, lack of a comprehensive written agreement outlining the outcomes of a conflict; and secondly, if there is a great deal of anger and resentment between the two partners and they refuse to co-operate in the slightest.
When the paperwork of each party is disclosed and inspected, each partner can analyse the likelihood of them winning the case. If one of the partners realises that the odds are stacked highly against them, they may want to come to an out of court settlement. Witness evidence will be used in the case, if the court deems this necessary. If no agreement is reached by this point, a trial will usually take place. This can be a lengthy and costly process, and trials may be separated, depending on the complexity of the case. When the judge has come to a verdict, the trial ends and the decision will be enforced.
In certain situations the judge may issue a decree of dissolution of the partnership, for example if the partner that is not the complainant has acted in a way to jeopardise the business, or breached the terms of the written partnership dissolution. There are many other situations in which a decree of dissolution may be issued, if the judge sees it as "just" to do so.
Court is certainly a last resort, but will be the only way that conflict is resolved for some business partnership disputes. In some situations, if a dispute leads to litigation, it may eventually lead to the company being wound up (ended) as well. This is why it is very important to seek professional legal advice from someone experienced in dealing with disputes between partners.
In the right circumstances, business partnership disputes can be resolved with the minimum amount of disruption to both the business and the partnership. However, this is not always the case, and sometimes the only option in a partnership dispute will be litigation.
Seeking legal advice at the earliest possible stage of business partnership disputes is highly advisable, so that each partner is aware of their rights and obligations. Two things can make the situation complicated, and lead to litigation being the only available option. Firstly, lack of a comprehensive written agreement outlining the outcomes of a conflict; and secondly, if there is a great deal of anger and resentment between the two partners and they refuse to co-operate in the slightest.
When the paperwork of each party is disclosed and inspected, each partner can analyse the likelihood of them winning the case. If one of the partners realises that the odds are stacked highly against them, they may want to come to an out of court settlement. Witness evidence will be used in the case, if the court deems this necessary. If no agreement is reached by this point, a trial will usually take place. This can be a lengthy and costly process, and trials may be separated, depending on the complexity of the case. When the judge has come to a verdict, the trial ends and the decision will be enforced.
In certain situations the judge may issue a decree of dissolution of the partnership, for example if the partner that is not the complainant has acted in a way to jeopardise the business, or breached the terms of the written partnership dissolution. There are many other situations in which a decree of dissolution may be issued, if the judge sees it as "just" to do so.
Court is certainly a last resort, but will be the only way that conflict is resolved for some business partnership disputes. In some situations, if a dispute leads to litigation, it may eventually lead to the company being wound up (ended) as well. This is why it is very important to seek professional legal advice from someone experienced in dealing with disputes between partners.
Source...