“Experienced Business Partnership Dispute Representation”
Memphis Partnership Dispute Lawyer
The stress of business operations can create fractures or divisions in even the strongest of friendships. Partnerships are no exception to this general rule. What might have begun as an exciting business venture between friends can devolve into arguments, suspicions, and litigation. This is especially true if one partner is intentionally or recklessly jeopardizing the success and operations of the partnership.
Having an experienced partnership disputes attorney on your side during such a difficult time can not only help ease your worries but also help you to resolve disputes that arise in your partnership before they have an opportunity to negatively affect your business and its profits. Contact Douglass & Runger, Attorneys at Law, your Tennessee partnership dispute attorneys, for help in navigating these often confusing and challenging legal waters.
What is a Partnership?
A partnership is a business entity in which two or more individuals either expressly or implicitly agree to carry on a business for a specific purpose to make a profit. Each partner to the partnership is an owner of the partnership and has certain rights and responsibilities that he or she may exercise. A partnership can be declared to exist even if it was not the express intention of the individuals involved to create a partnership. Partners in a partnership are personally liable for the debts and obligations of the partnership, even those obligations that another partner created without the consent of the other partners.
Common Reasons for Partnership Disputes
There are a myriad of reasons why partners in a partnership may have disagreements with one another. Most of these disputes, however, have to do with one partner feeling as if he or she is unable to exercise the rights that are his or hers as a partner. These reasons may include:
Disproportionate sharing of profits and/or losses.
The partners are supposed to share the profits and losses of the partnership either equally or in proportion to their initial contributions to the partnership. A partnership agreement can spell out a different arrangement as well. When one partner feels as if he or she is not obtaining as much compensation as he or she should, or is bearing too great a proportion of the losses of the partnership, a dispute can arise.
Inability to participate in management of the partnership.
Partners are supposed to have an equal voice in the management and direction of the business. A partner who feels shut out of the management of the business can quickly initiate a dispute with the other partners.
One partner engaging in unauthorized acts regarding the partnership.
A partner can bind the partnership and other partners to contracts and other liabilities if he or she is not careful. This can cause a rift between the partners if the at-fault partner feels he or she is acting in the best interest of the partnership but the other partners believe otherwise.
One partner is violating his or her ethical obligations toward the partnership.
This would include the obligation that the partner act in good faith toward the partnership and other partners and not misuse his or her position to take advantage of a situation that could and should benefit the partnership.
Contact Douglass & Runger, Attorneys at Law for Assistance with Tennessee Partnership Disputes
A partnership dispute does not necessitate the dissolution of the partnership. Tact and skill can save a partnership so long as all the partners are willing for the partnership to continue. At Douglass & Runger, Attorneys at Law, we have skillfully negotiated through partnership disputes to address the underlying cause of the rift while attempting to preserve the integrity of the partnership. If your business venture is threatened from within because of disputes and/or other serious issues, contact us at (901) 388-5805 for thoughtful and effective legal assistance.