Partnership Disputes

Name: Girard Bengali, APC
Address: 355 S. Grand Ave., Suite 2450 Los Angeles, CA 90071, Los Angeles, CA, 90071, US
Telephone: (866) 760-5009

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Introduction

Strong business partnerships are built on trust, shared goals, and mutual respect. Even the most promising partnerships, however, can face challenges that lead to disputes. When disagreements arise, they can threaten the stability and success of the business. If you find yourself in a partnership dispute, it’s critical to seek legal advice to protect your interests and resolve the conflict effectively.

At Girard Bengali, APC, our attorneys are skilled in navigating the complexities of partnership disputes. We understand that these conflicts can be deeply personal and financially significant. We take the time to learn the specifics of your unique situation so that we can provide tailored legal solutions that fit your exact needs. Whether you are looking to resolve a dispute amicably or need to take legal action, our team has the experience and resources to advocate for your best interests.

Common Causes of Partnership Disputes

Partnership disputes can arise from a variety of issues, ranging from disagreements over business operations to conflicts about financial management. Lack of a well-drafted partnership agreement can significantly increase the potential for a dispute, but even with a carefully written agreement in place it is possible to find yourself in a contentious situation. At Girard Bengali, APC, we have successfully represented clients in a wide range of partnership disputes, including:

Breach of Partnership Agreement

The partnership agreement serves as the foundation of the business relationship, outlining the rights, responsibilities, and obligations of each partner. When one partner fails to adhere to the terms of the agreement, it can lead to serious conflicts. Breach of partnership agreement disputes can involve a wide array of issues including profit sharing, decision-making authority, or non-compete clauses, among many others.

Fiduciary Duty Violations

Partners owe each other fiduciary duties, including loyalty, care, and good faith. When a partner acts in their own self-interest at the expense of the partnership, it constitutes a breach of fiduciary duty. This can involve actions such as misappropriating partnership assets, engaging in self-dealing, or concealing important information from other partners.

Disagreements Over Business Strategy

Partners may have differing visions for the future of the business, leading to conflicts over strategic decisions such as expansion, mergers, acquisitions, or changes in business focus. Disputes over business strategy can be particularly challenging when partners have equal decision-making power.

Overreaching by Executive Leadership

Overreaching by executive leadership occurs when managing partners or executives misuse their authority to benefit themselves at the expense of other partners. This can involve making unilateral decisions, excluding partners from key operations, or manipulating financial records to conceal misconduct. Such actions violate fiduciary duties and can lead to significant financial harm.

Financial Mismanagement

Disputes often arise when one partner believes that another is mismanaging the finances of the business. This can include allegations of embezzlement, improper accounting practices, or unauthorized use of partnership funds.

Partner Exit or Buyout Disputes

When a partner decides to leave the business or when the partnership needs to buy out a partner’s interest, disagreements can arise over the valuation of the partnership and the terms of the exit. These disputes can be particularly contentious if there is no clear buyout agreement in place.

Resolving Partnership Disputes

Partnership disputes can disrupt the day-to-day operations of a business and strain relationships between partners. At Girard Bengali, APC, our goal is to help you resolve disputes in a manner that minimizes disruption to the business and preserves your rights and interests. We explore all avenues for resolution, including negotiation, mediation, and arbitration, but are fully prepared to litigate when necessary. Whether you are seeking to resolve a current dispute or want to prevent future conflicts, we are here to provide the legal guidance you need.

Contact Our Attorneys to Discuss Your Partnership Dispute

If you are involved in a partnership dispute, it is essential to seek legal advice as soon as possible. Our experienced attorneys at Girard Bengali, APC, will help you navigate the complexities of your situation, resolve your dispute, and protect your business interests. To arrange a confidential consultation, please call 866-778-6821 or contact us online. We are here to support you every step of the way.