General

Problems with a partner? Business litigation may be the answer

Before company owners in Florida enter into business partnerships, it is normal for them to take steps that will help them avoid disputes down the line, or at least set terms on acceptable ways to resolve them. Unfortunately, sometimes, the only resolution that produces decent results is taking legal action. This is where a business litigation attorney can help.

Why do partnership agreements occur? There are a number of reasons. Some may include:

• Disagreements on growth strategy
• Arguments over management philosophy
• Disparity in roles and responsibilities

To help avoid such issues, partners often sign operations contracts and values agreements. These documents will set ground rules for how the company is to be run, describe the roles and responsibilities of each partner, create a declaration of commitment partners have toward each other and the company, and address potential issues before they even happen — among various other things. Before partners even begin working together, such documents should be created. If acceptable terms cannot be met, this would be a sign that the partnership is probably not the best idea.

What happens if a partnership contract was not created and a dispute occurs, or there is a contract in place but a problem arises that it does not appropriately address? There are two ways to resolve partnership disputes: alternative dispute resolution or litigation. ADR — resolution through mediation or private negotiations — is good and can work in quite a few cases. It would be nice if this worked every time, but it doesn’t. This is where filing a business litigation lawsuit in a Florida civil court may be the best answer.

Source: Forbes, “How To Avoid A Partnership Dispute“, Shane Robinson, Accessed on Aug. 24, 2017

Tue Aug 28, 8:49pm