Partnership Disputes and Dissolution
Partnership disputes are never easy, especially when they rise to the level of legal intervention. You may even find yourself in the difficult position of suing your business partner for damages if they have breached any of their fiduciary duties. Partnership disputes or buyouts can be resolved through mediation, third-party arbitration, or court actions.
Situations that require legal intervention can develop swiftly or escalate over time. If you suspect that a business partner is engaging in misconduct or if their actions are causing issues for the business, you should immediately begin documenting your concerns. You should hire an attorney to help you understand your options and determine your best course of action.
Dissolving a partnership can be a challenging process to go through, especially if the dissolution is unplanned. A partnership may be dissolved as a result of an agreement of all the partners, a partner’s misconduct, a judicial decision, or a dispute resolution.
In some cases, dissolution can be avoided if the partners come to a new agreement on how to proceed with the partnership entity. More commonly, partnerships are broken up and wound down because of partnership disputes that cannot be resolved.
After a partnership is dissolved, its financial liabilities must be paid, and the remaining assets need to be distributed to the partners in accordance with whatever governing agreement is in place. The attorneys at Warren Law Group can help walk you through this process.
Each business partner has the right to be fully informed of their partnership’s activities, regardless of their percentage of ownership. As such, partners have an absolute right to review the financial records of a business partnership at any time.
A partner may request a review of the partnership’s books if they suspect unfair payouts, hidden profits or losses, theft of opportunity, or for any appropriate reason at all. If a partner requests an accounting update but is denied, they can sue. In fact, the denial itself is a breach of fiduciary duty and could indicate further misconduct by other partners.
Business and Partnership Fraud
Fraud can cause serious issues that could even result in the dissolution of a business entity or a regulatory action. Cases of fraud sometimes involve intentional or negligent misrepresentations of facts by one partner to another who relies and acts upon that information – especially to their detriment.
Examples of business and partnership fraud include inducing someone to enter a contract on false pretenses, misappropriating funds or property, or manipulating an entity’s accounting records. Some violations could even result in criminal liability for the partner who committed the fraud.
An experienced business attorney can cut through the complexity and ambiguity in fraud cases to the reality underneath.
You want a seasoned lawyer on your side in a business fraud case, especially if you need to establish that you were an innocent partner who had no knowledge of or involvement in the fraud. Warren Law Group will review your case, determine the facts, collect all the necessary documentation and evidence to prove your points, and resolve any ambiguities that remain. Presenting your case before a judge, mediator, or arbitrator in this way increases your chances of an advantageous result.
Commercial Litigation and Breach of Contract
Warren Law Group attorneys are fierce advocates for our clients, especially in business-to-business disputes caused by breaches of contract.
A breach of contract happens when one party fails to perform in accordance with the agreed-upon contract terms. To win a judgment for damages in a breach of contract case, you must prove that a contract existed, you performed your part of the contract, the other party failed to perform their part of the contract, and you suffered harm as a result of their failure. For example, you may have suffered a financial loss because a counterpart, vendor, or contractor failed to perform or execute services promised.
Contracts take many forms and cover all types of subjects – purchasing products; providing services; determining how a business will be formed, owned, and operated; and resolving how transactions such as loans or joint ventures will unfold over given periods of time. These agreements detail the legal boundaries to which all parties must adhere. Additionally, a contract covers more than what is expressly included in the text. There are some rights implied in all contracts.
Breach of commercial contract cases can become quite complex. These matters often require an experienced attorney to properly evaluate the merits of the case and employ the best legal strategy that maximizes your chances of a favorable result. At Warren Law Group, our lawyers create a litigation or dispute resolution strategy tailored to your company’s needs. We fight hard so that you receive all the rights you are entitled to receive from your contracts.
Breaches of Fiduciary Duty
Once a business partnership is formed, each partner owes certain fiduciary duties to the other partner(s) and to the business itself. Regardless of whether you form a corporation, LLC, LLP, or another type of legal entity, any partnership agreement between individuals or businesses implies the fiduciary duties of loyalty, obedience, care, and disclosure.
If a partner intentionally or negligently breaches any of their duties, the other partners must act – either through mediation, arbitration, or litigation.
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