Montgomery County Business Attorney Discusses Partnership Disputes
Partnerships can be challenging. Friendships end, partners have different visions of growing the company, or financial matters arise. A dispute between partners often requires a bit of finesse. A Montgomery County business attorney can help work out a problem or take the matter to litigation if necessary.
Common Reasons for Disputes
While each partnership carries is unique in certain ways, disputes among partners usually boil down to one of the following:
- A poorly drafted agreement when the entity is formed—Incompatible ideas on how the business should be run will often come to light with a clear and detailed agreement.
- Strong differences in personalities among partners
- Mismanagement of finances—Running a business without strong management of finances is a recipe for disaster.
- Profit decline—Few issues cause more disagreement than when sales drop off and the business suffers.
- Dishonest act by one or more partners
- A partner dies or is unable to perform his/her duties
- A partner wishes to leave the entity or dissolve it
- All parties wish to dissolve the business but can't agree on how to divide asset
Dealing with a Dispute
Ideally, partners will find a way to work out differences without litigation. Mediation is one means of trying to find a resolution before irreparable harm is brought to the business. A Montgomery County business attorney can be very useful is steering a client to the right mediator, or making sure his interests are represented in mediation.
Should mediation fail, legal action may need to be taken. While one may be reticent to litigate against a friend or business associate, feeling that irreparable harm to the partnership could result, really, the business likely is already suffering from the dispute. A Montgomery County business attorney will work diligently toward an outcome that favors you.
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