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Can I Stop My Business Partner From Setting Up A Competing Business?

Yes, but it depends on the nature of your partnership and the facts. To stop your partner from establishing a competing business, in both New York and New Jersey, you may file a lawsuit and an emergency application (known as an "Order to Show Cause") for a court imposed injunction. If granted, the injunction would prevent your partner from operating a competing business. Factors that will be considered, include (a) whether or not the new business competes with your existing business, (b) the terms of your shareholder, member or partnership agreement - if such agreement exists, and (c) whether or not your partner is diverting business opportunities that rightfully belong to your existing business.

For additional information about partnership disputes we recommend reading "The New York and New Jersey Partnership Dispute Guide" by New York and New Jersey Partnership Dispute Lawyer Charles N. Internicola or you can contact Charles Internicola at 1.800.976.4904.

We also recommend reading the following articles concerning partnership disputes:

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