When is an Accounting the Right Solution for a Partnership Dispute in Florida?
Are you locked in a dispute with a business partner in Florida? Undoubtedly, you are looking for the most efficient, cost-effective resolution that properly protects your legal rights and financial interests. In Florida, an equitable remedy called “an accounting” can be an effective tool to solve complex partnership disputes. Though, it is not the right path forward in every case. Here, our West Palm Beach business partnership lawyer provides an overview of when an accounting may be the right solution for a partnership dispute in Florida.
Know the Basics: What is an Accounting?
An accounting is a type of equitable remedy in Florida. The Florida Bar Association explains that an accounting is “equitable settlement of claims and liabilities arising out of its relationship with another party.” While it can be used in a number of different circumstances, an equitable accounting is most commonly used as a method to resolve a business partnership dispute. It is a remedy that involves a court reviewing the transactions of a partnership in order to determine what division of assets and liabilities would be most equitable (fair) given the circumstances.
Three Signs that Suggest an Accounting is the Right Solution to a Partnership Dispute
In some situations, an accounting can be a great way to resolve a difficult partnership dispute. Whether or not it is a strong option for your case depends entirely on the specific situation. Here are three signs that an equitable accounting may be the right legal remedy for your situation:
- It is an Available Remedy in Your Case: An equitable accounting should be considered if it is a legal remedy available to you in your particular case. In Florida, an accounting may be sought when there is a complex financial dispute within a partnership. Its applicability varies based on the specific circumstances and the complexities of the partnership agreement.
- A Collaborative Solution Was (or Would Be) Ineffective: If efforts for a collaborative resolution of a dispute have been exhausted or are projected to be unproductive, equitable accounting may be a suitable solution. Some partnerships are not able to solve disputes amicably due to the nature of the disagreement, differences in personality, or conflicting interests.
- The Central Dispute is Financial: As a remedy to a partnership dispute, equitable accounting is generally most useful when the primary area of contention is financial. When partners disagree on their share of the profits, their contribution to the liabilities, or when there are accusations of financial impropriety, an equitable accounting can provide an objective, court-supervised assessment.
Speak to Our South Florida Partnership Dispute Attorney for Immediate Legal Help
At Pike & Lustig, LLP, our Florida business partnership lawyers have extensive experience helping clients navigate accountings. If you have any specific questions or concerns about an accounting as an equitable remedy to resolve a partnership dispute, we are here to help. Contact our business law team today to arrange a fully confidential, no obligation initial legal consultation.