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. Usually, these partnerships are formed by multiple individuals or multiple entities with a specific business goal in mind. A rocky dispute between parties involved in a partnership can be extremely detrimental to any business. That being said, the lawyers at Kleyman Law Group will ensure your issue is resolved quickly and efficiently which allows to circumvent any financial damages to your business.
What Is Fiduciary Duty?
Fiduciary duty is the strictest duty of care recognized by the legal system. It is broadly defined as the legal duty of one with superior knowledge and/or power to act in the best interest of another party. Fiduciaries, or the parties owing this duty, have a special relationship with the principals to whom they owe the duties. In essence, fiduciaries must act on the principals’ behalf. However, fiduciaries may not benefit from these relationships unless they have the principal’s express consent. Fiduciaries must also avoid conflicts of interest between themselves and their principals or between the principals and any of the fiduciary’s own clients.
While anyone can be appointed a fiduciary, a fiduciary duty 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 detailed list of common problems a variety of parties may face 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
The financial burden caused by a breach of contract for the business as a whole, may lead to one party being responsible for paying monetary reimbursements to the other party. Every business partnership starts with a contract that describes specific roles and responsibilities agreed to by every part involved. If one of these terms are violated, the filing of a lawsuit is necessary to ensure the offending party will comply to the legal repercussions necessary to rectify the violations.
The specialized responsibilities that lie within fiduciary agreements must be extensively researched by experienced lawyers prepared to dedicate the required time and effort to a case of this nature. The fiduciary lawyers at KLG are more than willing to handle the complexities if such a situation arises within a business partnership.
Breach of Fiduciary Duty
These issues arise when one party takes advantage of their leverage and authority within the business for personal financial gain. When the offending partner steals from the company by participating in illegal activity, they are misusing business assets. Our lawyers can help you both identify and completely solve this issue.
Misuse of Business Assets
Failure to Delineate Authority
Within the initial contract, authority must be properly delineated and understood by all partners involved in this original agreement. Without the clear distribution of responsibilities, certain internal divisions will begin to fail 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 of each business partner.
When a business partner purposely misrepresents themselves in order to receive personal financial gain from the profits of the company, they are participating in fraudulent activity. Our lawyers have the knowledge and dedication necessary to help you discover when issues like this arise within your company before a significant amount of financial damage is done.
Non-Compete Agreement Violations
These agreements are formed by all parties involved at the beginning of the partnership to ensure any one party isn’t able to start a business or profession that is in direct competition with the other partner(s). This is set in place to ensure the overall goodwill and confidentiality of the original business stays in tact without being misused or leveraged by any one party.
By forming these types of agreements early on, a partnership dissolution can usually be avoided. 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.
A dissolution of the business partnership is a last resort option given this means the business partners no longer want to be in business together. Seeking out experienced legal counsel in these situations is always the best option given they can be extremely complex in nature.
The attorneys at Kleyman Law Group will transform this complex process into a simple and efficient transaction on your end. Our professional team ensures the business is shut down and the contract is completely ended between all parties. Our KLG attorneys will be able resolve any differing opinions about the official close of the business before we proceed through the closing process detailed below.
➢ First, all partners will file legal paperwork with both the state and federal agencies to cancel the business permits as well as any licenses obtained during the business startup.
➢ Next, all the taxes and debts will be paid by the owners. This also includes the distribution of closing notifications to creditors, employees, and customers.
➢ Finally, the business will be sold and all profits go to the founding owners.
Kleyman Law Group will guide you through the step-by-step process required to make this a seamless process once all owners officially agree to close up shop.
Dissolution: The Last Resort
Clean and Fair Business Divorce
If a “business divorce” is truly the unique solution decided upon by all parties involved in the business partnership, our partnership dispute lawyers have the expertise necessary to help you handle your buyout agreement. This option comes with many complexities, but our team is able to ensure the outcome is advantageous for each partner going through this significant business transition.
We are also well-versed in the various partner liabilities that may come into play once this decision has been made. Some of these liabilities include:
➢ General partner liability
➢ Vicarious liability
➢ Joint liability
➢ Several liability (employee actions)
➢ Direct liability (individual actions)
No matter the situation, the lawyers at KLG law firm always have your best interest at heart to ensure your assets are fully protected at all times.
When the situation begins to intensify between warring partners, be proactive about these disagreements before your business experiences significant financial damages.
Call your local KLG lawyer to provide you with the knowledgeable experience required to handle these delicate situations.
You have certain rights as well as legal obligations that need to be met to ensure both you and your partner receive a fairly profitable outcome from an unfortunate situation. If you notice your partnership is starting to take a turn for the worst, don’t hesitate to contact us today.
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.