What Are Common Examples Of Shareholder Or Business Partner Disputes?

There are a variety of different issues that partners get into disputes over. One of the bigger issues is money and its distribution. Some others are how the business is going to be operated, the duties of each particular partner, and major employment issues. Also there may be disputes over major decisions, whether it’s buying property, leasing an office, or buying equipment.

Should I Hire An Expert Such As A Forensic Accountant During My Partnership Dispute?

If there are questions about some financial irregularities and you are not able to determine where the money went or why it went to a certain place, hiring a forensic accountant or expert to look into that is wise. Other experts that we commonly see in these disputes are valuation experts. This is important if one of the partners is going to be selling their shares or buying the other partner’s shares. The parties can have some kind of baseline to try to determine what the business is actually worth in the free market, so they can have some basis to discuss the purchase or the sale of their assets.

What Is A Key Factor In Avoiding Trial If I Do Have A Partnership Dispute?

The biggest factor in avoiding a trial or any kind of lawsuit is having a written partnership agreement that specifies operational issues, major decisions, financial issues, and employee issues. Try to outline all of the major decisions that are going to have to be made by the partners and decide who makes those decisions and what happens if there is a dispute. The more detailed a partnership agreement, the better it will be in avoiding disputes later. If a dispute happens, it’s often easier to resolve those disputes if the particular situation is addressed in the partnership agreement. Many times, when we run into partnership litigation disputes, it’s because the parties did not create a proper partnership agreement. Spending some money to work with an attorney to get an agreement which is very detailed will help the parties avoid conflict and expensive litigation.

Can I File A Lawsuit In Court Even If My Partnership Agreement Has An Arbitration Clause?

Whether you can file a viable lawsuit depends on what your arbitration provision says. Some arbitration clauses say that arbitration only applies to only certain disputes, but not others. If the provision says that it applies to any kind of dispute between the parties or the partners, then a court is likely going to enforce that arbitration clause, unless there are some other problems with arbitration to begin with. More often than not, if there is an arbitration provision in the partnership agreement, the court is going to force the parties to go to arbitration.

For more information on Common Business Partner Disputes, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.