Partnership disputes can happen at any business. While these disputes can undermine the value of your equity interests and put your whole business in jeopardy, they are manageable if proper steps are taken in a timely manner. Often, identifying the problem, collecting information and opening communication can prevent future disputes. When an open dialogue is insufficient, there are other reactive measures that can help you resolve the dispute. Here are a few measures that will help you manage your partnership dispute:
- Gather information. Before taking any actions, you should learn about partnership disputes and fiduciary duties. Understanding your rights and obligations is the first step to reviewing your options.
- Understand which options work for you. Find a specific plan of action that focuses on the strengths of your case. There are different options available depending upon the dynamics of your partnership relationship and equity status.
- Research what breaches took place. Are you the victim of partnership lockout, misappropriation of assets, minority shareholder oppression or diversion of business opportunities? There are many ways that partnerships can get broken and there are different legal options available depending upon the cause of the dispute
- Determine how you define success. Setting unrealistic goals will not help the resolution process. You will need an understanding of what you are entitled to and what is possible. Once you establish with your attorney what success means to you, he or she will be able to evaluate your case and help you create a specific plan of action.
The best course of action for you and your business will depend upon a number of different factors. You must consider your percentage in the equity interest, whether or not you control significant influence over critical assets, the terms of your partnership and the actions of your partners. If you feel that your partners have violated their fiduciary duties, it may be time to consider your legal options. Early intervention is crucial to coming to an amicable resolution for you and your business. Please contact experienced business attorney Charles N. Internicola at The Internicola Law Firm, P.C. to better understand your rights and options.