Partnerships in New York and New Jersey
When faced with a dispute with your partner – not an ordinary "business dispute" – but rather a dispute that is interfering with the operations of your business‚ you must take proactive measures and consider the necessary steps to preserve your equity and ownership interests.
Partnership Disputes: Important Factors to Discuss with Your Lawyer
In the article "Partnership Lawsuits in New York and New Jersey: Important Factors to Discuss with Your Lawyer" I outline some of the important factors and legal decisions that a business owner should discuss with his or her business lawyer.
One important factor that relates to my absolute preference for a negotiated settlement (of a partnership dispute) compared to a protracted and expensive lawsuit. However‚ it is critical to note that "negotiations" only work if you and your partner are in an equal bargaining position‚ i.e.‚ you are and continue to be involved in the day-to-day business operations‚ you have access to the books and records of the business and you maintain daily communications with your customers and clients.
What to Do When You Do Not Possess Equal Bargaining Power
If you do not possess equal bargaining power (i.e.‚ you have been locked-out or are denied access to books and records) negotiations may be pre-mature and the best course of action may be the commencement of a lawsuit seeking (a) a preliminary injunction and (b) an accounting. Once an injunction is obtained you negotiating position will be greatly enhanced and so will the opportunity to reach a balanced settlement.
Additional Information about New York and New Jersey Partnership Disputes
For additional information about partnership disputes and what your options are contact us