Disagreements between partners can result in serious conflict that affects the business. They may involve various issues, from investment allocations to decision-making authority.
While some disputes are inevitable, a well-drafted partnership agreement can prevent or minimize them. A knowledgeable attorney can also assist you with developing dispute-resolution procedures.
Defining the Issue
Defining the issue is a crucial step in partnership dispute resolution. It will allow the parties to devise a mutually beneficial solution for both sides.
Usually, partnerships will encounter a dispute at some point, whether due to a breach of fiduciary duties or resource allocation. Regardless of the reason, a conflict between business partners can devastate the entire company.
Fortunately, many ways exist to resolve these disputes without going to court. Alternative dispute resolution methods can be less expensive and less invasive than litigation, often leading to creative solutions that work for both parties.
Negotiating a Solution
Sometimes the best way to resolve a dispute is to sit down and talk it out. During these discussions, keeping your emotions in check and considering what’s at the heart of the issue is essential.
Remember that the other party is just a human being with interests, priorities, and values. They’re also just as likely to take things personally and misunderstand your points of view.
If you feel your relationship has become too strained to work through the issues alone, consider hiring a partnership dispute lawyer to help you negotiate a solution. This could be through mediation or arbitration.
Developing a Plan of Action
It can be a daunting task to deal with conflict in a close business relationship. However, there are steps you can take to contain disagreements, manage them so each party feels heard, and find a solution that leaves the partnership intact.
First, make sure to set up a system for resolving disputes. This can be done by including dispute-resolution provisions in your written partnership agreement.
Disputes can be a significant source of stress for a small business, and it’s best to avoid them as much as possible. If you experience a conflict with your partner, there are several ways to resolve it, and one of these options is negotiation.
Negotiation is the most basic form of conflict resolution and can be used at any stage of a conflict. It’s also the most effective if you’re willing to compromise and find a solution that works for both parties.
Filing a Claim
After building a business, it’s not uncommon for a partner to disagree on the company’s direction. These disagreements are called “partnership disputes.”
A partnership dispute lawyer can help you file a claim against your partner for any losses you incurred due to their actions or omissions. These can include breach of fiduciary duty, fraud, misappropriation of funds, and other matters.
These claims can be complex and expensive, but seeking legal action is necessary if your interests are at stake.
A business dispute can be a devastating experience, particularly for the owners who entered the venture with optimism and trust. However, a partnership dispute can be resolved if both parties work together to find an effective solution.