In a perfect world, business partners would always get along. Unfortunately, this is not the case. Business partners do not always get along and partnership disputes can arise over workload, compensation, management direction, or even interpretation of the entity’s governing documents. Whatever the partnership dispute, we understand the heavy burden that these types of conflicts can lay on a partner, member, or shareholder.
Partnership disputes tend to arise when the business is becoming successful. These disputes usually arise because of two basic reasons. Often there is a perception that one partner is working harder than the other, or one partner is being paid more than the other. It doesn’t matter if it is true, the perception that this is true tends to break up partnerships. Combined with this is a breakdown in respect and trust. These qualities are the backbone of any good relationship, and without them the partnership breaks down.
Shareholder disputes also arise for a variety of reasons. In some instances one or more shareholders seek to terminate the shareholder relationship. Minority shareholders may disagree with actions taken by the majority. There is often a claim by a minority shareholder that the majority shareholders engaged in fraud. When these disputes arise it is important to address them before these issues can wreak lasting havoc upon the organization.
In these difficult situations, our attorneys will seek the best possible resolution for you. Sometimes that means representation in pre-litigation negotiations over the dispute. Sometimes that means employing arbitration, mediation, or other forms of alternative dispute resolution. More often than not, a reasonable compromise, like a buyout, or other arrangement can be reached before having to bring a lawsuit.
However, sometimes the dispute is so serious and divisive that shareholder litigation is required. Other times, shareholder litigation is needed immediately to prevent further or impending harm. In either event, our firm is fully prepared to represent you in court, no matter what type of business entity you are involved in. Our attorneys have fought through all types of partnership disputes, shareholder derivative actions, and other business-related litigation. Through this experience, we can provide you effective representation in any dispute situation whether it be pre-litigation or mediation. Contact Michael Wilcox today to schedule an appointment to discuss your individual case involving partnership and shareholder disputes.