Businesses may take many forms. While lots of businesses are large and have many employees, many others are partnerships between only a few people. When disputes between business partners arise, an attorney can step in and settle the matter in accordance with the law.
Partnership disputes might include all sorts of disagreements or conflicts, including – but not limited to – breaches of fiduciary duty, disagreements over how to run the business, and one partner buying out the other. While some partners try to work things out independently, you might get to a point where a lawyer is necessary to resolve the dispute. A lawyer can help you protect your business and personal interests in a dispute with a business partner. They can also help you alter business contracts if you or your partner wish to alter certain aspects of the partnership. If necessary, your lawyer can help you sue for damages if you believe your business partner wrongfully harmed the business.
For a review of your case, contact our partnership dispute attorneys at Howe & Associates by calling (678) 680-6983.
Examples of Partnership Disputes in Atlanta
Running a business can be incredibly difficult, especially when business partners cannot agree. While some disputes may be worked out privately between the partners, some cannot be resolved without the help of a lawyer. An attorney might be especially crucial if you believe your business partner has done something to harm the business illegally or wrongfully.
Breach of Fiduciary Duty
A major source of disputes between business partners is fiduciary duty. A fiduciary is a person who is legally obligated to act in the best interests of someone else. This often comes up in business settings where partners are legally responsible for acting in the best interest of the business and others involved in the business. If you believe your partner did something to violate this duty, you should contact an attorney immediately.
One example of a breach of fiduciary duty is self-dealing. This occurs when a fiduciary (i.e., your business partner) conducts business or transactions in their own self-interest rather than the interest of the business. For example, your partner might have used money from the business to pay off personal debts. Even if the partner plans to replenish the funds, they have still breached their fiduciary duty.
Another possibility is that your business partner was misappropriating funds or assets. This might involve a business partner skimming from business profits and fudging accounting numbers to cover their tracks. Often, people do not realize that their profits have been misappropriated for a long time, and huge amounts of money have been lost.
Another example is your partner making secret deals or agreements behind your back. As a fiduciary, they owe you and the overall business transparency and honesty in how they conduct business. Secret dealings, even if they do not harm the business, are often aimed at excluding other partners from profit.
Disagreements Over How to Run the Business
Many disputes revolve around disagreements over how to run the business. Perhaps you favor a more financially conservative approach while your partner pushes for a more high-risk-high-yield strategy. Who gets to make the final decision?
Another example might involve using business profits. Perhaps you want to spend the money on improvements to the business location, renovating and remodeling workspaces, or making repairs. Your partner might disagree. They might want to use the profits to invest in a second location to expand the business.
You might disagree with your business partner over how to structure employment. Maybe you want to delegate more responsibility to a manager while your partner prefers to be more hands-on and take those responsibilities for themselves.
Whose opinion controls? Often, businesses have written, formal business agreements signed by all the partners. This agreement might explicitly state which partners have authority over certain issues. For example, the business agreement might state you have the final say on hiring managers. Meanwhile, your partner has authority over how profits are spent.
One Partner Wants to Buy Out the Other
If one of the partners wants to take full ownership of the business, they need to buy out the other partner or partners. This is not always a problem if the other partners are open to it. However, not all partners want to sell. Alternatively, the partners might disagree over a fair price.
How do we work out the agreement? Our partnership dispute attorneys can help you evaluate the business’s fair value and how much each partner should be paid if one partner wants to buy them out.
Is the other partner willing to sell, or are they being pushed out? Sometimes, in breaches of fiduciary duty, one partner wants to push out the partner whose behavior has hurt the business. Your attorney can help you work out a deal where you buy out your partner in exchange for forgoing a lawsuit for breach of fiduciary duty.
Why You Need an Attorney for a Partnership Dispute
You might wonder why you need an attorney to work out a dispute with your business partner. Most business owners are reluctant to involve attorneys because they want to maintain a good relationship with their partners. Unfortunately, not all partners have the other’s best interests at heart, and legal representation might become crucial to protecting yourself.
An attorney can help you protect your interests and the interests of the business. If money is missing or your partner is making important decisions without your knowledge or consent, your attorney can step in. They can review business records to see what happened to the missing money or enforce the terms of the business agreement so your partner stops making decisions without you.
If you are concerned that your business partner has used the business to engage in illegal activities, your lawyer can help you protect yourself from criminal liability. This often comes up when a business partner is embezzling or using the business as a front for criminal activity.
If you and your partner wish to change certain aspects of the business, a lawyer can help alter contracts and agreements between partners. This might be essential to ensure that the changes you want are implemented.
Speak to Our Atlanta Partnership Dispute Lawyers Abou Your Situation
For a review of your case, contact our partnership dispute attorneys at Howe & Associates by calling (678) 680-6983.