Resolving business partnership disputes between members or co-owners of an LLC or partnership should be done efficiently and fast since it may make or break the business. When partners are involved in litigation or dispute, the entire business is at risk. More energy should be devoted towards analyzing the business critically since any decision-making can be marred by disagreement that can easily evolve into an open feud.
Causes of Partnership Disputes
Disputes between business partners can occur due to several reasons, but they generally fall into either:
- When one of the parties feels that their contribution is far greater, or the monetary compensation is not in tandem with perceived performance.
- A loss of respect or trust between partners.
It is critical that you only work with an experienced commercial litigation attorney firm in Tampa. The attorney should value the relationship and actively pursue re-establishing a productive working environment, even as the dispute has been resolved.
Resolving the Dispute
Several steps can be taken to resolve the partnership dispute.
Step 1: This is business, and it does not help making matters personal. Remember the reasons why chose to become partners in the first place and roles each of you were to take on. This means going back to the partnership agreement and re-evaluating its provisions on decision making, resolving disputes, among others as explained by the U.S. Small Business Administration.
Step 2: Confirm ownership interests and every facet of the operational side of the business including financial status. Keep the business open, but seek advice from an experienced counsel.
Step 3: Any proposals for a resolution should not be forwarded until all issues around the dispute are addressed, related data researched and documented. “Fair play” goes a long way in such situations. Make sure any offer is one that you are happy to live by.
The attorney you choose should have a solid track record of success and experience in negotiation, mediation, arbitration and litigation stages in open court. While working towards achieving goals and objectives established in your partnership, your legal partners should understand the value of your relationship.