West Palm Beach Partnership Disputes Attorney
Businesses operate under a number of different entity structures. While a sole proprietorship involves just one business owner, a partnership will involve at least two parties. Any time two or more people are involved in forming a business, there is the potential for disputes to arise. Some of the biggest companies in the world started as a partnership, including Facebook, Microsoft, and Apple and at some point along the way, there has been a dispute in these businesses. At Pike & Lustig, LLP, our West Palm Beach partnership disputes attorneys can help you draft a partnership agreement that will prevent disputes from occurring. Below is an overview of the most common types of partnership disputes, how to avoid them, and the remedies available.
Common Types of Partnership Disputes
Many different types of disputes may arise in a partnership. The most common of these include:
- Breach of contract: Partnerships involve a number of different types of contracts. These contracts can outline the terms of the business, the authority of the different partners, and which party is liable for losses suffered by the business. When any partner violates the terms of these documents, it is a breach of contract that could give rise to a dispute.
- Disclosing confidential information: Much of the information in any business is considered confidential and in a partnership, it is not uncommon for this information to be protected unless all partners agree otherwise. When one partner discloses this type of information, it can be cause for a partnership dispute.
- Undisclosed dealings: Partners are not usually allowed to make side deals or make deals under the table without the knowledge of the other partners. These types of dealings are typically considered violations of the business agreement.
- Underperforming: Most partners are usually considered to have some responsibility to perform at a certain level. When one or more partners do not live up to these expectations, it can give rise to a dispute.
- Personal conflicts: Partners sometimes disagree on a personal level, or they may have differences of opinion when it comes to making decisions about strategies or operational decisions.
Any time one of more of these disputes arise, it is important to know how to resolve them.
Dispute Resolution Methods
Certain actions can be taken to avoid or minimize partnership disputes. However, this is not always possible. When a dispute arises, it may go to court or the partners may agree to alternative dispute resolution (ADR). In many cases, the court will order ADR before the case proceeds to trial. Some of the most common types of ADR methods include:
- Arbitration: During arbitration, an arbitrator will listen to all arguments presented before issuing a decision, which is legally binding.
- Mediation: Unlike arbitration, the decisions made during mediation are not the decision of the mediator and they are not legally binding unless all parties come to an agreement.
- Negotiation: The most common type of dispute resolution, often the parties involved can enter into negotiations without a third party present and resolve the dispute on their own.
Regardless of the type of ADR used, it is always advised that you are represented by a Florida business lawyer before proceeding.
Our Florida Business Lawyers can Help You Avoid Disputes
Partnership disputes happen all the time in Florida, but it is important to know you can prevent them and protect the partnership. At Pike & Lustig, LLP, our knowledgeable West Palm Beach partnership disputes attorneys can help you draft a partnership agreement that will prevent disputes from occurring, and we will help you resolve them if they do. Call us today at 561-291-8298 or contact us online to learn more about how we can help.