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Six Paths To Resolve A Partnership Dispute In Florida


Business is about relationships. This is especially true for people who own and operate a partnership. As with any relationship, a disagreement can arise between business partners. A disagreement can grow into a full-blown partnership dispute—especially if left unaddressed for too long. There are many different options available to settle a disagreement between business partners. In this blog post, our West Palm Beach partnership dispute attorney highlights six of the most common paths to resolve a partnership dispute in Florida.

  1. Negotiation 

Many partnership disputes are resolved through negotiation—either formal or informal. Assuming you still have a reasonably good working relationship with your business partner, negotiation may be the best path forward. For the most simple of partnership disagreements, an open and honest conversation may be sufficient. 

  1. Mediation 

If you are locked in a more significant business dispute, informal negotiation may not be the best path forward—but that does not mean that you need to go to court. Quite the contrary, mediation is an excellent option for many business partners involved in a dispute. Mediation is a form of alternative dispute resolution (ADR) that is focused on mutual problem-solving.

  1. Arbitration 

Some partnership disputes are resolved through arbitration. In effect, arbitration is similar to a mini, private version of a trial. Your partnership agreement may call for mandatory, binding arbitration for disputes. Alternatively, parties may voluntarily agree to go before an arbitrator to resolve their dispute in a more timely, cost effective manner than a lawsuit. 

  1. A Buy-Out 

In some cases, a partnership dispute is simply a sign that it is time for one (or more) of the business partners to move on. One way to resolve partnership disputes is through a buy-out. A business partner’s stake of the company can be purchased by the other owner(s) before any damage is done to the business. 

  1. Litigation 

With partnership disputes, it is generally a best practice to look for a resolution outside of litigation. That being said, a settlement is not possible in every case. You may be in a situation where you need to go to court to protect your legal rights and financial interests.  

  1. Dissolution 

Finally, some partnership disputes are resolved by dissolving the business. Depending on the nature of the business, there may simply be no reasonable path forward for continued operation. It may be better for parties to dissolve the company in an orderly manner so that they can take their distributions and go their separate ways.

Are You Involved in a Partnership Dispute in Southeastern Florida?

We can help. At Pike & Lustig, LLP, our West Palm Beach commercial lawyers have considerable experience handling partnership disputes. If you are looking for the best strategy to resolve a partnership conflict, our legal team is available to help. Give us a call now for a completely private case review. Our firm serves businesses and entrepreneurs throughout all of South Florida, including in Palm Beach County, Martin County, Broward County, and Miami-Dade County.

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