Disputes between partners can often be resolved by finding a common goal. However, they can also quickly devolve into contentious litigation. We help partners protect their interests nationwide.
Disputes among partners can go a few different ways. Oftentimes, it will be in all partners’ best interests to find an amicable solution, and they will be able to negotiate an outcome that keeps their business running. Sometimes, partnership disputes will lead to litigation, and the outcome will depend on the ability of each partner’s attorneys to represent him or her effectively in court. Then, there are the partnership disputes that seemingly never go away. Confrontations are a daily occurrence and the business suffers as a result, but no one takes the initiative to steer the dispute toward a final resolution.
At Oberheiden P.C., we help our clients resolve partnership disputes quickly and cost-effectively. We are strategic negotiators and skilled litigators, and our attorneys have centuries of experience resolving complex disputes both in and out of court. Regardless of the individuals and issues involved, and regardless of how long the dispute has been ongoing, we can help you achieve a final result that protects your interest in the partnership while minimizing any negative effects on the partnership itself to the fullest extent possible.
Business Litigation Counsel for All Types of Partnership Disputes
We represent general partners and limited partners in all types of partnership disputes. We serve clients in all industries, and we are able to provide representation nationwide. Whether you are being accused of some form of impropriety, one of your partners is harming the business, or you and another partner have reached an impasse that prevents critical decisions from being made, our attorneys can help you work toward a favorable outcome without unnecessary costs, disruptions, or delays.
Disputes Between General Partners
Most partnership disputes involve disagreements between general partners. In a general partnership, all partners have financial rights and obligations, and all partners are directly involved in the partnership’s management. General partners have attributes similar to both shareholders and executives in a corporation; and, as such, they have numerous interests that can – and often do – lead to conflicts at the partnership level.
Disputes Between Limited Partners
Limited partners are investors who are not involved in the partnership’s direct day-to-day operations. Limited partnerships (LPs), limited liability limited partnerships (LLLPs), and other statutorily-recognized entities recognized under state law have both limited partners and general partners; and, while disputes between limited partners and general partners are common, so are disputes between limited partners who have conflicting thoughts on how best to protect and grow their investments.
Disputes Between General Partners and Limited Partners
Disputes between general partners and limited partners can arise for a variety of different reasons. But, generally speaking, these disputes tend to involve financial issues, and typically either (i) claims from limited partners alleging that general partners are not adequately managing the partnership, or (ii) claims from general partners pertaining to limited partners’ obligations to provide capital injections.
Common Issues in Partnership Disputes and Litigation
In terms of substantive issues, the reasons for contentious partnership disputes can run the gamut from disagreements regarding the company’s direction to allegations of financial misconduct. In our business litigation practice, we represent partners on both sides of all types of disputes, including those involving issues such as:
- Breach of Fiduciary Duty – All partners owe fiduciary duties to the partnership. This means that they must act in the partnership’s best interests, and they may not make partnership-level decisions based on their personal interests or those of a competing entity. Breach of fiduciary duty claims are common in partnership disputes, and we have extensive experience pursuing and defending against allegations of a broad range of fiduciary breaches.
- Misappropriation of Business Opportunities for Personal Gain – One particular type of fiduciary breach that has a relatively-high likelihood of leading to litigation is the misappropriation of business opportunities for personal gain. If a partner learns of a business opportunity that could benefit the partnership, in most cases that partner cannot choose to pursue the opportunity independently or on behalf of another business entity.
- Failure to Participate in the Management of the Business – General partners have an obligation to participate in the management of the business consistent with the terms of their partnership agreement. If a partner fails to meet his or her managerial responsibilities, this can lead to ill will, disputes regarding whether individual partners have “earned” financial distributions, and significant discord which can disrupt the partnership’s day-to-day operability.
- Disagreements Over Business or Financial Management – In addition to failure to participate in the partnership’s management, disagreements over business and financial management are common issues in partnership litigation as well. When partners with equal control rights reach an impasse, or when majority and minority partners’ priorities conflict, it is fairly common for these disputes to escalate to the point of requiring a formal resolution.
- Disagreements Over Capital Contributions – Disagreements over general partners’ and limited partners’ obligations to make capital contributions are also common triggers for partnership litigation. While the partnership agreement should provide clear guidance, ambiguous agreement terms, missing language, questions of interpretation, and lack of access to capital are all issues that can lead to disputes among partners.
- Disagreements Over Financial Distributions – Just as disagreements over capital contributions are common triggers for partnership litigation, so are disagreements over partners’ rights to financial distributions. Money is the driving factor behind most business disputes, and disputes among partners are no exception.
- Theft or Diversion of Partnership Assets – Theft of partnership funds, diversion of payments to the partnership, and misappropriation of intellectual property (IP) and other intangible assets are serious issues that will often require prompt intervention. If one of your partners has stolen partnership assets (or is threatening to steal partnership assets), or if you are facing accusations of theft or diversion, it is important that you consult with a partnership litigation attorney promptly.
- Exceeding a Partner’s Scope of Authority – Under the terms of the partnership agreement, each partner should have clearly-delineated roles and responsibilities. General partners and limited partners who exceed the scope of their authority can create significant issues for the partnership, and these partners may be liable to other partners and/or the partnership itself for entering into contracts, terminating contracts, and taking other actions they are not authorized to take on the partnership’s behalf.
- Representing the Partnership in a Negative Light or Harming its Reputation – Making inappropriate comments on social media, being intoxicated during business meetings or events, and other acts that represent the partnership in a negative light or harm its reputation can cause significant financial losses, and they can often lead to disputes among partners.
- Efforts to Remove a General or Limited Partner – Efforts by one or more partners to remove another partner tend to be contentious by their nature, and this means that they also tend to lead to disputes. If your partners are attempting to oust you from the business, or if you need to try to remove a partner who has become a liability, our attorneys can help you strategically pursue a favorable result.
Why Choose Oberheiden P.C. to Resolve Your Partnership Dispute?
Partnership disputes can involve extremely high stakes; and, if not handled appropriately, they can lead to significant losses for both individual partners and the partnership entity. At Oberheiden P.C., our attorneys have extensive experience handling partnership disputes and related forms of business litigation, and we offer our clients deep insights derived from the favorable results we have secured in a broad range of real-world scenarios. Whether you want to preserve your partnership as a going concern, you are seeking to execute an exit strategy or force another partner’s withdrawal, or you are simply focused on maximizing the return on your investment, our attorneys can get the job done.
Here is what you can expect when you choose Oberheiden P.C. for your partnership dispute:
- Representation By Senior Attorneys – All of our attorneys have extensive litigation experience. Unlike other firms, we do not employ any junior associates or paralegals.
- Assistance from Former Federal Agents – Our litigation consultants and investigators are former high-ranking agents with the FBI and other federal agencies.
- 24/7 Access to Our Firm – As a client of Oberheiden P.C., you will have 24/7 access to the attorneys and litigation consultants working on your case.
- Client-Focused Representation and Responsiveness – We prioritize communication with our clients, and we will respond to your calls, texts, and emails promptly.
- Commitment to Your Success – Regardless of the issues involved in your partnership dispute, we will rely on our experience to efficiently achieve a successful result.
Request a Free Consultation with a Partnership Litigation Attorney at Oberheiden P.C.
For more information about our firm’s representation for partnership disputes and litigation, please contact us to arrange a complimentary initial case assessment with one of our senior attorneys. You can reach us by phone 24/7 at 888-680-1745, and if you submit your contact information online one of our attorneys will be in touch with you promptly.