The holidays can lead to fights between family members. What about when there’s conflict between business partners? A family dispute could ruin a family dinner. However, disputes between business partners could end in business litigation. The result could be costly verdicts and settlements.
This blog post covers how business litigators can help resolve disputes between partners. Our New Jersey business attorneys also discuss ways partners can avoid or minimize disputes with the help of a lawyer.
Tips for Avoiding Business Disputes Between Partners
Beginning a new business with a partner is an exciting undertaking. The partners are excited about their new partnership. At first, everything goes well. However, disputes between partners can result in expensive and time-consuming business litigation.
Taking proactive steps now can help you avoid partnership disputes in the future. Things you and your partners can do to improve dispute resolution and reduce the risk of disputes include:
- Work with a business attorney to develop a written partnership agreement that outlines the specific conditions and terms of the partnership
- Engage in direct dispute resolution and negotiation with a partner to resolve a dispute
- Consider hiring an experienced business litigator to act as a mediator to resolve disputes
- Seek legal advice during disputes instead of making assumptions or taking matters into your own hands
- Establish internal policies and procedures for making decisions and resolving disagreements
- Decide who will own the intellectual property developed through the partnership
- Establish clear roles and responsibilities for each partner
- Remain professional even though you disagree with your partner
Partners may disagree about many issues related to the business. For example, they might disagree about business management or an imbalance in workloads. Partners might have disputes related to resource allocations and distributions. They may have conflicts about the direction the company is taking.
Hiring an experienced business attorney to draft the partnership agreement and other necessary documents can help avoid disputes and conflicts in the future. However, if disputes arise, turning to an experienced business litigator can help resolve the disputes effectively and fairly.
Resolving Partnership Disputes With the Assistance of an Experienced Business Litigator
An experienced business litigator can mediate between partners to resolve disputes. Business litigators act as impartial parties to help facilitate discussions between partners. A business litigator can help resolve partnership disputes by:
- Assisting you in identifying the disputed issues
- Negotiating modifications to the partnership agreement to resolve a dispute
- Facilitating positive discussions between partners to resolve conflicts
- Settling a partnership dispute to avoid litigations
A business litigator can help partners who can no longer work together to take the next step to sever the partnership. An attorney can help you with a voluntary or involuntary dissolution. The attorney may negotiate a buyout of a partner’s interest. In some situations, the partners may decide to sell the business.
Regardless of the type of dispute, partners can benefit by seeking legal advice from a partnership attorney. Understanding your rights, obligations, and responsibilities under a partnership agreement is the first step in developing a strategy to resolve partnership disputes.
Contact Our Office for a Free Consultation With a New Jersey Business Attorney
Our New Jersey business attorneys at Nagel Rice, LLP, can help you and your partners resolve disputes to avoid business interruption and loss of revenues. Our lawyers are experienced in all areas of business law and partnerships. Call us today to schedule a free initial consultation with a business attorney to discuss your situation.