Partnership Disputes

When friends, or other people, enter into a business relationship together it is usually thought of as a "partnership", even though it may be in a form of a corporation, limited partnership or LLC. Sometimes something goes wrong, personality disputes, or other issues. The parties may have a disagreement as to how things should be done, or how things should have been done in the past. If they can’t reconcile it could lead to considerable loss to both of them by way of a loss to the business.

The best way to resolve such disputes, of course, is without litigation. However, if this can’t be done, the next alternative is arbitration. Many partnership agreements contain an arbitration clause, and arbitration is generally much quicker, less expensive and more efficient than litigation.

If there is no arbitration clause the dispute may have to be brought to Court.

If irreparable injury is taking place at the time I am retained, then I would recommend seeking a provisional remedy, that is, a temporary injunction. This is a court order directing someone to do or not to do something, which is sought at the very beginning of the case rather than at the end of the case. However, it is very time consuming and expensive. One of the benefits it can sometimes bring is an early end to litigation.

I always explore the possibility of resolving without litigation when a business breaks up, and advise that litigation is a last resort. It is not only expensive, it is somewhat unpredictable.