San Diego Partnership Dispute Lawyers

Methods for resolving partnership disputes include:

• Negotiation: In many cases, a partnership dispute can be resolved through negotiation. This can involve a discussion between the partners or a meeting with attorneys. The goal of negotiation is to reach a mutually beneficial agreement that resolves the dispute. This can often be the most cost-effective way to resolve a partnership dispute.
• Mediation: Mediation is a type of alternative dispute resolution that is widely used to resolve partnership disputes. Mediation entails choosing an independent third party to help the partners settle the conflict. The mediator does not have the authority to make decisions, but they may guide the parties in recognizing the obstacles while working toward a solution. Mediation is confidential and its end result is not legally binding until all parties agree on the terms.
• Litigation: A partnership issue cannot always be resolved outside of court. When a situation like that arises, it may be beneficial to take the dispute into court and have a judge make a decision. Litigation is a lengthy and costly process, but it may be the most suitable option if the partners are unable to settle on an agreement. The court will make a ruling based on the partnership agreement and other evidence.

These are merely some of the strategies that may be taken for settling a complex partnership conflict. The best approach for your matter will be based on the aspects of your case. A professional attorney from Purdy & Bailey, LLP could help you evaluate the various options available so you can make an informed decision.

How to Prevent Partnership Disputes

Preventing a conflict between business partners is far simpler than needing to resolve one. A well-drafted partnership agreement is one of the most effective ways to avoid an issue. A partnership agreement is a legally enforceable document outlining each partner's rights and responsibilities. It also specifically defines the steps to follow if or when a disagreement develops.

A well-drafted partnership agreement should include:

• The name of the partnership
• The purpose of the partnership
• The names and addresses of each partner
• How much money each partner is contributing to the partnership
• How profits and losses will be divided
• How the partnership will be managed
• How decisions will be made
• How disputes will be resolved
• How the partnership can be dissolved

Why Choose Our Business Dispute Lawyers?

Partnership disputes can have a massive impact on your business and personal life. Our qualified business dispute attorneys in San Diego have years of experience and are ready to help you understand your legal rights and options. We are skilled negotiators and litigators, and we can help you understand the potential risks and rewards of each dispute resolution method so that you can move forward.

What Specific Laws Or Statutes in California Govern Partnership Disputes?

In California, the legal framework for handling partnership disputes is established by the California Corporations Code, notably through the Uniform Partnership Act (UPA), which spans sections 16100 to 16962. This extensive legal statute delineates the duties and obligations of partners involved in both general partnerships and limited liability partnerships (LLPs).

Several important clauses in UPA address common problems that come up in partnership disputes. These include how partnerships are formed, the fiduciary responsibilities of partners, how the partnership's business is managed and controlled, how profits and losses are allocated, and how the partnership is dissolved.

• Fiduciary Duties: Partners owe each other fiduciary duties of loyalty and care. Violations of these duties, such as self-dealing or gross negligence, can be grounds for legal action.
• Management and Control: UPA specifies how partners may participate in the management and decision-making processes within the partnership. Disputes often arise when partners disagree on business strategies or operational decisions.
• Profit and Loss Sharing: The statute dictates how profits and losses are to be shared among partners, which can be a frequent source of conflict.
• Dissolution Procedures: UPA outlines the procedures for dissolving a partnership, including the settlement of debts and distribution of remaining assets.

It is essential for those handling partnership issues to speak with seasoned San Diego partnership dispute attorneys at Purdy & Bailey, LLP. Whether your case involves mediation or litigation, our lawyers can offer custom, experienced counsel. We know UPA and other legislation tied to partnership disputes and can successfully represent your interests and guide you through this stressful time.

If you require more information or need our help, please contact us to arrange a consultation.

When it seems like your business relationship can’t be saved, we are here for you. Call Purdy & Bailey, LLP right away at (858) 360-7080 or submit our online contact form.