PARTNERSHIP DISPUTES ATTORNEY IN ELIZABETHTOWN, KENTUCKY
Recent tax statistics indicate that there were about 4.28 million partnerships in the U.S., representing more than 28.25 million partners. When two or more partners run a business, there may be disagreement regarding the operations or management of the partnership, finances, and contracts, among other issues. In the event of a partnership dispute, the partners must explore various ways to settle the disagreement amicably or ultimately dissolve the partnership.
If you’re involved in a partnership dispute, consulting with an experienced Kentucky business law attorney is crucial for detailed guidance. At Caleb Bland Law, PLLC, we’re dedicated to offering knowledgeable and comprehensive guidance to clients in partnership dispute-related matters. As your legal counsel, we can evaluate the reasons for the dispute and enlighten you about your available options to resolve it. Even if you’re considering a dissolution, we can guide you through the partnership dissolution process and help protect your best interests.
Caleb Bland Law, PLLC proudly serves clients across Elizabethtown, Kentucky, and the surrounding areas of Radcliff, Louisville, Shepherdsville, Grayson County, and Jefferson County.
Common Causes of Partnership Disputes
A partnership dispute can be described as a dispute or disagreement between two or more partners involved in a partnership business. Such disagreement may be about different issues, such as business operations, finances, vision, contracts, or personal matters. Here are some of the most common causes of partnership disputes:
Disagreement over the direction, goals, and expectations of the business
Breach of fiduciary duty
Unequal or unfair workload distribution
Breach of contract or failure to perform
Mismanagement of the company’s resources
Lack of transparency
Violation of non-compete agreements
Disclosure of confidential information
If you’re involved in a dispute with another business partner, you should get in touch with a skilled business disputes attorney immediately. Your legal counsel can evaluate the reasons or causes of the disagreements, explore your available dispute resolution options, and determine whether you have a legal claim against the other party.
Legal Claims in a Partnership Dispute
Depending on the reason for the partnership dispute and other surrounding circumstances, you may be able to bring a legal claim against your partners and seek relief. Common examples of legal claims that may be brought in a partnership dispute include:
Breach of contract claims
Fraud and misrepresentation claims
Breach of fiduciary duty claims
Tortious interference claims
Trade secret misappropriation claims
Unjust enrichment claims
A trusted lawyer can help file your claims, seek to pursue your deserved relief, or explore the various ways to settle the partnership dispute amicably.
Resolving a Partnership Dispute
Partnership disputes are often inevitable over the lifetime of a partnership business. However, when such disagreements occur, the partners must take prompt reactive actions to resolve them. Here are some available options to settle a partnership dispute:
Negotiation involves all forms of direct or indirect communication between the disputing partners to discuss and settle the dispute. In negotiation, there is no outside facilitator or third party involved.
Mediation requires the disputing partners to come together to discuss the issues and reach a feasible compromise with the help of a neutral third party. The mediation attorney or mediator will help negotiate with all parties and hopefully facilitate a possible resolution.
In arbitration, the disputing partners will submit evidence and testimony to one or more arbitrators. The panel of arbitrators will evaluate the evidence, deliberate, and make a decision.
However, if the disputing partners are unable to resolve the dispute through mediation, negotiation, or arbitration, they can pursue litigation through the court system. A hearing will be scheduled and the private judge will issue a final order.
In extreme cases where the partners are unable and unwilling to compromise, dissolving the partnership business may be the last resort. Partnership dissolution is the formal and legal way to wind up a partnership business. Once dissolved, the partnership will no longer exist.
A seasoned Kentucky partnership dispute attorney can help you understand the benefits and drawbacks of each dispute resolution option and guide you through the legal process involved.
The Partnership Agreement
A partnership agreement is a legal document that outlines the provisions and terms of the partnership. A comprehensive partnership agreement must include the following minimum provisions:
Steps for dispute resolution
The rules governing voting when there are more than two partners
The expected capital contributions of each partner
Provisions for allocating profits, losses, and debts
Terms for making financial and management decisions
Steps to withdraw or admit new partners
Steps to dissolve the partnership
In the event of a partnership dispute, the partners must refer to the agreement to decide how to settle such disputes. Also, the partners can review, modify, update, or create a new partnership agreement to lay a solid foundation for future relationships.
Work With a Seasoned Business Law Attorney
Navigating partnership disputes usually involves a lot of complexities. Regardless, understanding the terms of the partnership agreement and available dispute resolution options is imperative to achieve a fair resolution. A seasoned business law attorney can explore your available legal options and determine the best course of action.
At Caleb Bland Law, PLLC, we’re committed to helping clients navigate delicate business issues involving partnership disputes. Our trusted legal team can advise you about your various dispute resolution options and help determine the ideal one to pursue. Even if you decide to dissolve your partnership business, we walk you through the dissolution process and help you navigate key decisions.
PARTNERSHIP DISPUTES ATTORNEYS IN ELIZABETHTOWN, KENTUCKY
If you need assistance resolving a partnership dispute or dissolving your partnership, contact us at Caleb Bland Law, PLLC today for an initial consultation. Our dedicated attorneys can offer you the experienced legal guidance and trusted advocacy you need to make intelligent decisions. We proudly serve clients across Elizabethtown, Radcliff, Louisville, Shepherdsville, Grayson County, and Jefferson County, Kentucky.