Litigation to address partnership disputes within a business partnership can be one of the most damaging and lengthy forms of legal action. Experts tend to agree that avoiding internal litigation is a primary goal for any business or contractor. Long-time attorney and legal expert Louis Modugno agrees, citing decades of experience in the industry. “It is absolutely essential to avoid getting into partnership litigation disputes, especially with modern businesses,” he said in a recent interview. “Avoiding legal intervention begins when a partnership is established. Your business deserves sound partnerships and systems that lead to a successful and robust business collaboration.”
According to industry experts, there are five primary ways to avoid and resolve partnership disputes. Although they may not work for everyone, they can quickly and concisely address a problem before it leads to court battles. Below are some of the most frequently recommended methods of reducing partnership friction before a dispute arises or escalates.
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The first step to avoiding potential disputes and litigation is creating thorough written agreements. This is where hiring an excellent attorney or legal expert comes into play.
Having a written agreement with well-defined terms will help you avoid most disputes before they arise. At the bare minimum, map out the answers to some of these pressing questions:
When entering into any contractual arrangement, be sure to rely on an attorney who can help you craft excellent legal documents. A legal expert considers and covers the essentials to protecting your business.
Instead of focusing on an outcome or future result, many people embroiled in a partnership dispute find themselves trapped in a spiral of blame-gaming, frustration and arguments. It is much easier to focus on personal grudges and annoyances than the problem at hand, which is why so many preventable partnership disputes end up as lengthy court battles.
Professional attorneys and litigation lawyers suggest that partners should sit down and have meaningful conversations about their expectations, needs and desires for the business. Have a written procedure in place to address any partnership disputes, and try to follow this plan to a T. If your partner refuses to sit down with you, or if they are avoiding you altogether, you may need to seek additional methods of partnership dispute management.
One of the most common phrases in partnership litigation is “Thou shalt not go to court.” If possible, avoiding any sort of courthouse appearance will protect you, your business and your ideals from being compromised or destroyed by legal action.
If possible, seek a dispute mediator within your industry to help sort out both sides of the partnership problem. There are many types of mediators available today from third-party businesses. These contractors have no stake in the problem at hand and will work alongside you and your partner to reach an amicable and equitable conclusion.
If a mediator is not an option for you, consider taking or offering an out-of-court settlement. Providing large sums of money in order to break up the business could be a quick and pain-free method of dissolving partnerships without heading to court. In this case, you may still want to hire a litigation lawyer to assist in scripting or executing any legal procedures during the settlement process. This will help to cover your liability in the event of any problems and will ensure a peaceful, harmless dissolution of partnership liability.
Partnership disputes are sometimes inevitable, despite your best efforts. Some lawyers in the field liken it to a bitter divorce or breakup in which both sides of the dispute head for a scorched-earth outcome despite past loyalty and affection.
In this situation, it is paramount to speak with a litigation lawyer as soon as possible. Preparing yourself for the realities of the court—as well as any pressing concerns related to incoming legal action—will be very helpful in the early stages.
Depending on your unique circumstances and dispute, you may want to prepare yourself for the very real threat of being counter-sued or otherwise engaged in unwanted legal turmoil. A good construction litigation lawyer will help you navigate the complexities of the courtroom as well as be present during any conversations with the opposing party. There is never a wrong time to contact a litigation attorney in your area, particularly if you feel there will be an unavoidable dispute.
Partnership disputes can be an ugly or even destructive aspect of your business growth. However, choosing the right attorney can mean a world of difference between a painful outcome and a successful future. Be sure to do plenty of research right at the beginning to identify a potential partnership dispute lawyer that will fight for you and your situation.
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