Partnership Dispute Attorneys
Litico Law Group's partnership attorneys are litigators who pursue and defend lawsuits between business partners. We provide:
- complimentary initial consultations;
- up-to-date understanding of the law;
- responsiveness and flexibility;
- modern technology and efficiency; and
- aggressive, thorough attorneys.
"Partnership" Disputes
By "partnership" disputes, we mean conflicts between people who own businesses together. Legally, the co-owners may be corporate shareholders, limited liability company members, or true partners. These cases are also sometimes referred to as "business divorces." If a partner is forced out or being denied the benefits of ownership, it may be referred to as a "freeze-out" or "squeeze-out."
Though different statutes and case law apply based upon the type of entity in question, these cases generally proceed in the same manner. First, if the company's information is unavailable to you, your attorney should work to obtain relevant documents either through voluntary cooperation or, if necessary, with court assistance. Partners, limited liability company members, and shareholders in closely held corporations all have information rights.
Second, you and your attorney will likely try to negotiate a resolution before either side files a lawsuit. Pre-litigation solutions to partnership disputes may include one or more of the following:
Third, if a negotiated resolution doesn't work, you or your partner might ultimately file a lawsuit. If a suit is filed, you may still negotiate a resolution through a settlement encompassing one or more of the above resolutions. Additionally, you or your partner may ask the court to award: (1) an injunction to bar certain conduct and/or (2) money for damages suffered. Legal claims often asserted in partnership disputes include:
Shareholder oppression claims litigated pursuant to Section 12.56 of the Business Corporation Act provide a particularly wide-range of options for courts, from damages, to forced buy-outs, to corporate dissolution.
In many cases, there is also a breach of a contract component to partnership disputes. Shareholder agreements, buy-sell agreements, operating agreements, and partnership agreements are all contracts, assuming legal contract formation.
Though different statutes and case law apply based upon the type of entity in question, these cases generally proceed in the same manner. First, if the company's information is unavailable to you, your attorney should work to obtain relevant documents either through voluntary cooperation or, if necessary, with court assistance. Partners, limited liability company members, and shareholders in closely held corporations all have information rights.
Second, you and your attorney will likely try to negotiate a resolution before either side files a lawsuit. Pre-litigation solutions to partnership disputes may include one or more of the following:
- a buy-out of one or more of the partner/shareholder/member's interests in the business;
- reimbursement to the company for misappropriated funds;
- distribution of profits or dividends;
- compensation changes;
- personnel changes; and
- implementation of new policies, practices, and procedures.
Third, if a negotiated resolution doesn't work, you or your partner might ultimately file a lawsuit. If a suit is filed, you may still negotiate a resolution through a settlement encompassing one or more of the above resolutions. Additionally, you or your partner may ask the court to award: (1) an injunction to bar certain conduct and/or (2) money for damages suffered. Legal claims often asserted in partnership disputes include:
- breach of fiduciary duty;
- unjust enrichment;
- accounting;
- fraud;
- constructive trust;
- and statutory claims pursuant to the Business Corporation Act of 1983, the Limited Liability Company Act, the Uniform Partnership Act, or the Uniform Limited Partnership Act.
Shareholder oppression claims litigated pursuant to Section 12.56 of the Business Corporation Act provide a particularly wide-range of options for courts, from damages, to forced buy-outs, to corporate dissolution.
In many cases, there is also a breach of a contract component to partnership disputes. Shareholder agreements, buy-sell agreements, operating agreements, and partnership agreements are all contracts, assuming legal contract formation.