KLG Business Partnership Dispute Attorneys
A solid business partnership is an agreement between two or more parties that business will be conducted by everyone involved. Partnerships like these are often created by multiple individuals or multiple entities with a specific business goal in mind. A disagreement between partners in a business venture can be highly detrimental to any business. In light of the above, the Business Lawyers at Kleyman Law Group will ensure that your issue is resolved promptly and efficiently, enabling your business to circumvent any financial damages to your business.
What Is Fiduciary Duty?
Legally acknowledged, fiduciary duty is the most stringent duty of care. It is broadly defined as the legal obligation of a person with superior knowledge and authority to act in the best interests of another party. Fiduciaries, or the parties owing this duty, have a unique connection with the principals to whom they owe the duties. In essence, fiduciaries must act on behalf of their principals. However, fiduciaries may not profit from these connections unless they have the principal’s express consent. Additionally, fiduciaries must also avoid conflicts of interest between themselves and their principals as well as their principals and any of their own clients.
Although anyone can be appointed a fiduciary, a fiduciary duty only applies to professionals like accountants, real estate brokers, and lawyers. If any of these professionals failed to act in your best interest, they likely breached their fiduciary duty. Fiduciary liability can also apply to members of a limited partnership, corporation, directors, and shareholders.
Below is a comprehensive list of the most frequent problems that may arise over the lifetime of any business partnership. You can avoid costly litigations, arbitration, public disputes, or mediation if you take proactive steps to resolve the following issues before they take root in your business.
Partnership Disputes: Avoid These Common Issues
Breach of Contract
A breach of contract may cause a significant financial burden for the business as a whole; it may lead to one party being responsible for paying monetary reimbursements to the other party. Contracts are the foundation of any successful business partnership. These legally binding documents outline the duties and obligations of each party participating in the venture. If any of these terms are violated, filing a lawsuit is necessary to ensure the offending party will comply with the legal repercussions required to rectify the violations.
The specialized responsibilities that lie within fiduciary agreements must be extensively researched by experienced lawyers willing to devote the required time and effort to a case of this nature. If such a situation arises within a business partnership, the fiduciary lawyers at KLG are more than eager to tackle the complexities that accompany the issue.
Breach of Fiduciary Duty
These problems emerge when one party takes advantage of their leverage and authority within the business for personal financial benefit. Misuse of Business Assets occurs when the offending partner steals from the company by engaging in illegal activity. Here at KLG, our Business Partnership Dispute Lawyers can assist you in determining the nature of the problem as well as providing a comprehensive solution to it.
Misuse of Business Assets
Failure to Delineate Authority
Within the initial contract, the authority must be properly delineated and understood by all partners involved in this original agreement. Without a defined allocation of tasks, some internal divisions may start to collapse due to significant neglect by one or more of the partners. We can help you resolve these issues by formulating or amending the original contract to better outline the roles and responsibilities of each business partner.
Fraud happens when a business partner intentionally misrepresents themselves in order to benefit financially from the company's profits. Our experienced business lawyers at KLG have the knowledge and dedication necessary to assist you in detecting the emergence of such problems within your company prior to a significant amount of financial damage being done.
Non-Compete Agreement Violations
At the beginning of the partnership, Non-compete agreements are formed by all parties involved to ensure no partner would engage in a business or profession that is in direct competition with the original business. This is set in place to ensure the overall goodwill and confidentiality of the original business stays intact without being misused or exploited by any one party.
A partnership dissolution may be avoided if these types of agreements are drafted early enough. This is especially true when you use the assistance of a professional KLG attorney to help guide your business partnership back to a path full of prosperity and profits.
Dissolution of the business partnership is the last resort option since it implies that the business partners no longer want to be in business together. Seeking out experienced legal counsel while dealing with these situations is always the best option, given that they can be highly complex in nature.
The Business Partnership Dispute Lawyers at Kleyman Law Group will streamline this complex process into a simple and efficient transaction on your end. With the help of our expert staff, you can be certain that the business will be permanently closed and the contract will be ended between all parties. Our KLG attorneys will be able to settle any disputes that may arise over the business's official close. The closure process is outlined below.
➢ First, all partners will file the required legal paperwork to the relevant state and federal agencies to cancel the business permits and any licenses obtained during the business startup.
➢ Next, the owners will pay all the taxes and debts. This also entails notifying about the closure to creditors, employees, and customers.
➢ Finally, the business will be sold, and all profits will go to the founding owners.
Kleyman Law Group will guide you through the step-by-step process required to ensure a smooth transition for you -once all owners officially agree to close up the business.
Dissolution: The Last Resort
Clean and Fair Business Divorce
If a “business divorce” is the only viable solution to the problem at hand and all parties involved in the business partnership are agree, then our partnership dispute lawyers have the requisite expertise to assist you with your buyout agreement. This choice entails several challenges, but our team can ensure that each partner will benefit from this big business transformation.
Once this choice has been taken, we are also well-versed on the different partner liabilities that may come into play. Some of these liabilities include:
➢ General partner liability
➢ Vicarious liability
➢ Joint liability
➢ Several liabilities (employee actions)
➢ Direct liability (individual actions)
No matter the circumstances, the attorneys at the KLG law firm always have your best interests in mind and work diligently to ensure that your assets and possessions are fully protected at all times.
Be proactive when coping with escalating problems between warring partners before your business experiences significant financial harm due to the conflict.
Get in touch with a KLG Business Partnership Dispute Lawyers near you to provide you with the knowledgeable experience required to handle these delicate situations.
You and your partner have specific rights and legal obligations that must be met to ensure both receive a fairly profitable outcome from an unfortunate situation. If you notice your partnership is starting to take a turn into a more negative state, don’t hesitate to contact us immediately.
These types of disagreements are better solved when they first get started rather than many years down the road when the business partnership has no hope of being salvaged. Call us right now to schedule your free consultation with one of our professional KLG lawyers.