While business partners start out with the best of intentions, sometimes disagreements arise. These disagreements could be caused by anything from a difference of opinion about how to best utilize resources to a breach of contract. To protect your business, it’s crucial to address major disagreements head on rather than letting them simmer.
If you have a formal partnership agreement drafted by an attorney, the first step is to review the agreement to see if it covers how to resolve the issue being disputed. Many times, partnership agreements include “what if” scenarios and resolutions for them. In this case, you would need to resolve the dispute using the plan in the agreement. If this is not feasible, the next step is to contact a business dispute attorney. The attorneys for both sides will try to negotiate an agreement that is acceptable to both partners. When successful, negotiation is often the most cost-efficient way to resolve a partnership dispute. Who pays for the legal fees is something that can be included as part of the negotiated agreement.
Sometimes, though, negotiations fail. If your partnership agreement allows for mediation, this is a less expensive option than litigation. For a mediation, both business partners meet with a neutral third party who helps them work out their differences and develop a resolution that is acceptable to both parties. In addition to being less expensive than litigation, it also is confidential, allowing your business to stay out of the news while you resolve the issue. Mediation also allows for more creative solutions than a court would provide. Similar to negotiations, payment of legal fees can be included in the mediation agreement.
Another option that is less expensive than litigation is arbitration. Arbitration works like an informal court. Both sides present their cases to the arbitrator and the arbitrator will make a judgement, like a judge does, which is legally binding. Similar to mediation, both business partners agree on who will arbitrate the dispute. Often times, the arbitrator is someone with knowledge of the business’ industry. The results of the arbitration remain confidential.
If none of these options are successful, the last resort is litigation. This is usually the most time-consuming and expensive option to pursue. Both parties will present their cases before a judge, who will resolve the conflict. If your partnership agreement has a clause stating that the prevailing party of a dispute can recover their legal fees, then you will be able to do so. If your agreement does not specify this, recovering legal fees will depend on the specific circumstances of your situation.
If you are in a partnership dispute, contact Rader Law Group today. We are experienced business attorneys, expert negotiators, and successful courtroom litigators. We will fight aggressively for your business to receive justice.
Rader Law Group, LLC
With decades and decades combined experience, the attorneys at Rader Law Group understand the meaning of Justice. Our one and only mission is to get each client the justice he or she deserves; our team of attorneys never back down when we know our client is right.
We offer our clients the compassion and guidance they need as they work through trying times in their lives. The balance of working relentlessly for our clients combined with our caring approach has helped us achieve a fantastic record of success with our clients. We get our clients the justice they deserve.
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