Partnership Disputes in New York City
Unfortunately, partnerships can dissolve for various reasons, such as disagreements between partners, declining revenue, individuals breaching duties, or violations of written agreements. These NYC partnership disputes can put a strain on your time and money. For that reason, you need a skilled legal team to resolve any conflicts. Our team of senior attorneys is here to help you throughout the partnership dispute process.
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At Oberheiden P.C., our attorneys will work diligently to protect your interests and ensure you get the proper resolution regarding any dispute or dissolution. Contact us if you need an experienced partnership dispute law firm in NYC.
Why Trust Oberheiden P.C. To Handle High-Stakes Partnership Disputes
At Oberheiden P.C., our legal team has a proven record of successfully resolving these partnership disputes and other types of litigation.
Why do many business partners trust us to handle these high-stakes disputes?
Senior Litigation Counsel
Every attorney on our partnership dispute team has senior-level litigation experience. We will never pass your case to a paralegal or junior associate.
Cost-Effective Litigation Strategies
With our strategic approach to your case, we will protect your interests throughout the entire legal process.
Results-Oriented Dispute Resolution
Our legal team has one goal: get a result that allows you to move forward with your business or personal life.
When you hire us, you can reach the senior attorney handling your case by text, phone, or email. We are available on a 24/7 basis.
Committed To Your Success
From trial consultants to senior attorneys, we are all committed to the success of your case. We have the track record to prove it.
What To Know About Partnership Disputes
Initially, partnerships are formed with a focus on starting a business. The partners often have good faith that everyone will work with one goal: to help the company succeed. However, problems often occur. Sometimes, partners can lose interest in the business or not adhere to the terms of their partnership agreement. In those cases, it may be time to seek a legal resolution to these problems.
When you have a partnership dispute in NYC, make sure to contact the skilled law firm of Oberheiden P.C. Our senior litigation attorneys are available to represent both limited and general partners in many types of disputes. Our law firm has successfully handled litigation, arbitration, and mediation of these cases. Whether you need to defend yourself against unfounded partnership disputes or need legal action to enforce another partner’s obligations, we can help you.
What Are Common Causes of Partnership Disputes?
Various problems and conflicts can lead to a dispute among partners. Usually, there is an allegation about the business’s operations, disagreement about partnership obligations, or evidence of partner misconduct. A few of the common causes include:
Breach of Contract
Many partnership agreements have complex terms. However, they are essential to establish the responsibilities and roles of every partner. Also, these agreements outline the financial arrangements of the company. Most partners sign several binding contracts, including confidentiality, employment, operational, and non-compete agreements. If a partner violates the terms of these contracts, that is known as a breach of contract in the partnership.
Breach of Fiduciary Duty
A fiduciary duty is an obligation that an individual must act in the best interest of an entity or person. Partnership agreements outline the fiduciary duties between the business and its partners in a partnership. There are four types of fiduciary duties in partnerships: a duty of care, a duty of disclosure, a duty of good faith and fair dealing, and a duty of loyalty. When another partner does not hold up to those duties, then legal action may be necessary to resolve the issues.
When entering a partnership, you will want to believe that everyone will act legally in their duties. Unfortunately, partner misconduct can occur, putting the business at risk. Partners misreporting business funds, opportunities, or assets may have engaged in misconduct. Some types of misconduct also include gross negligence in managing the business, committing fraud, and concealing vital information. While some partners may have actually committed these offenses, it is not uncommon for other partners to make false allegations, leading to these disputes.
Business Operations Disagreements
Not everyone will agree on how to operate the business. When conflicts arise, these operational disagreements could end up in court. Many disputes involve investment opportunities, allocations of resources, decision-making powers, and day-to-day operational problems.
Generally, the partnership agreement outlines the partners’ responsibilities and the type of work required to operate the business. If any of the terms are not detailed, it may lead to a dispute regarding the workload responsibilities of each partner.
Frequently Asked Questions: Partnership Disputes
Can I Avoid a Partnership Dispute?
In many cases, a well-drafted partnership agreement is an ideal way to avoid these disputes. With that agreement, all the partners’ obligations, rights, expectations, and guidelines need to be established to minimize any impacts on the business. Unfortunately, all partners must be willing to cooperate and adhere to these terms. If you feel like there could be conflicts in the partnership, contact the legal team at Oberheiden P.C.
What Is a Mandatory ADR Clause?
There are mandatory alternative dispute resolution (ADR) provisions within many partnerships. Sometimes, the agreement requires the parties to arbitrate or mediate their disputes, avoiding litigation. However, these partnerships will have specific exceptions. For example, if a partner attempts to usurp their power, it could provide grounds for legal relief in the civil court system instead of following ADR. The mandatory clauses in any partnership agreement are enforceable in court. Sometimes, the clauses can be challenged regarding a particular business’s transactions.
When you work with Oberheiden P.C., our legal team will review your partnership’s terms to determine whether there are provisions for mandatory ADR. With that information, our skilled partnership dispute attorneys will then help you make an informed decision about how to resolve your case.
How Can Partnership Disputes Be Resolved?
Partner conflicts are almost inevitable, but many issues are resolved on amicable terms. Most times, negotiation can help, allowing everyone to reach a settlement. There are times when other steps need to be taken.
Sometimes, the partners will buy out the other individuals. Under the partnership agreement, there should be a provision about when a buyout can occur and how much interest can be offered to the partner. Also, arbitration or mediation must be required in these cases. Arbitration requires a third party to make a decision, but the award will depend on whether it is binding according to the partnership agreement. If it is legally binding, the courts can enforce the terms of the arbiter’s decision. With mediation, a neutral third party will help to facilitate a discussion and potential agreement between the parties. However, a decision will not be enforced through the mediation process.
Can I Enforce the Terms of My Partnership Agreement?
You can enforce certain terms of your partnership agreement depending on specific circumstances. If a partner is not living up to the terms, you need legal help to seek enforcement. As previously mentioned, the partnership agreement often outlines any terms regarding dispute resolution. If you need to mediate or arbitrate the situation, then you will need a skilled partnership dispute legal team to handle your case. At Oberheiden P.C., we have a successful track record of protecting our client’s interests and reaching a successful resolution in these complex cases.
Can the Partnership Be Forced To Dissolve?
Serious partnership disputes often end with a dissolution of the partnership. When all partners agree to dissolve, that is known as voluntary dissolution. Usually, only a few partners want to dissolve the agreement, which is known as an involuntary dissolution. In those cases, the requesting partners need to get a court order to dissolve the partnership. At that point, the debts and assets of the business will be divided. All business operations will cease, with the existing contracts, bank accounts, intellectual property rights, and other matters needing to be resolved. Usually, a court will appoint a third party to manage the company until the dissolution is finalized.
Remember that these terms will depend on your partnership agreement. Many agreements will specify a provision for the removal and dissolution of the partnership if certain circumstances are met. On the other hand, some agreements will have vague language that does not mention any specifications. If you believe the partnership could dissolve or you may be forced out of the agreement, contact the legal team at Oberheiden P.C.
Talk To Our Partnership Dispute Attorneys
While many partnerships are created in good faith, there are times when a dispute can lead to the end of the business. Even with the best planning, these conflicts often turn contentious, leading to false allegations or other potentially damaging consequences. By working with an experienced partnership dispute attorney, you can understand your legal rights and responsibilities in any dispute. Hiring a skilled legal team can resolve the problem before the partnership dissolves or causes irreversible harm to your business.
At Oberheiden P.C., our senior attorneys have a successful track record of resolving New York City partnership disputes. Make sure to contact us to see how our law firm can help your case. Schedule a free consultation with one of our senior partnership dispute attorneys. You can call us at (212) 970-9468 or fill out the online contact form to schedule an initial consultation.