My Business Partner Breached Our Partnership Agreement: What Are My Remedies?
A partnership agreement is a core founding document for business partnerships in Florida. Each partner should abide by their contractual duties. When they fail to do so, it can cause personal and/or professional problems for their business partner. This raises an important question: What options are available to handle a breach of partnership agreement in Florida? Here, our Miami partnership dispute lawyer offers a comprehensive overview of your remedies if your business partner breached the partnership agreement.
What is a Breach of a Partnership Agreement?
A breach of a partnership agreement occurs when one or more partners fail to comply with the terms and conditions outlined in the partnership agreement. Some notable examples include:
- Failing to contribute promised capital;
- Engaging in unauthorized transactions; and
- Not fulfilling professional duties outlined in the agreement.
The breach can be intentional or unintentional, but it can result in damage to the partnership, financial loss, and even dissolution of the partnership.
An Overview of Your Remedies for Addressing a Breach of Partnership Agreement in Florida
In Florida, a partnership business is largely governed by the partnership agreement. In Florida, there are several remedies available to address a breach of partnership agreement. Here is an overview of the legal options you have to take on a breach of partnership agreement:
- Mediation: Mediation is a voluntary, non-binding process that aims to resolve disputes amicably. In this process, a neutral third party (mediator) facilitates communication and negotiation between the disputing partners.
- Arbitration: Arbitration is a binding, private dispute resolution process that takes place outside of the court system. A neutral third party (arbitrator) hears both sides and makes a final decision, which is legally enforceable.
- Injunction: An injunction is a court order that requires a party to stop doing something or to perform a specific act. In the context of a partnership agreement, an injunction can be used to prevent a partner from engaging in further harmful conduct
- Monetary Damages: Damages can be awarded to compensate the non-breaching partner for financial losses incurred as a result of the breach. These may include lost profits, loss of business opportunities, and other consequential damages.
- Buyout: A buyout occurs when the non-breaching partner(s) purchase the breaching partner’s interest in the partnership. It is a remedy that effectively removes the breaching partner from the partnership.
- Partnership Dissolution: In extreme cases, a court may order the dissolution of the partnership. The dissolving of a partnership involves the termination of the partnership and the distribution of its assets among the partners.
Get Help From a Top South Florida Partnership Litigation Attorney Today
At Pike & Lustig, LLP, we are a business litigation firm committed to providing solutions-driven legal guidance and support in partnership dispute cases. If your business partner breached your partnership agreement, our attorneys are here to help. Contact us today to set up your strictly private case review. With legal offices in Miami and West Palm Beach, our firm handles breach of partnership agreement disputes all across the surrounding region in Southeast Florida.
