Ideally, business partners will work together for the good of their joint enterprise. However, if a partner breaches their agreement or duties, it could harm the enterprise and the other party. Therefore, if you are involved in a business partnership, you need to know your legal remedies. Here is more on suing your business partner.
Reasons Why You May Have to Sue Your Business Partner
One Florida business partner may have to consider suing the other for several reasons. Some of the most common reasons for Florida business partner disputes include:
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Breach of the Partnership Agreement
Typically, this includes breaching a duty or obligation expressly stated in the contract (partnership agreement). If a partner fails to follow the express terms of your agreement and you are harmed (suffered damages), you may have a basis to sue.
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Breach of a Partner’s Breach of Fiduciary Duty
When business partners enter into a partnership agreement, they owe one another a fiduciary duty. This means they are obligated to act in the partnership’s best interests and place those interests above their own when making decisions. When it can be shown that a partner has breached their fiduciary duty, the other party may be able to sue for legal remedies.
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Partner Negligence
Business partners have a mutual responsibility to attend to their joint venture and exercise care and good faith. If a partner fails to act in a manner that a reasonable person would under the same circumstances, and the business is harmed, there may be a case for partner negligence.
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Intellectual Property Rights
Florida business partnerships often involve the parties having a shared right to intellectual property. This may include patents, copyrights, trademarks, and other non-tangible creations. If one partner misuses intellectual property for their own gain, the other may have a legal claim against them.
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Partner Abandonment
When a partnership is ending, the parties have an equal responsibility to take care of concluding their business. When one partner leaves the other without completing their part of dissolving the venture, the other may have a case for abandonment.
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Theft and Other Criminal Activity
If a partner steals from the other or otherwise engages in criminal activity involving the partnership, the other partner may be able to pursue legal recourse for their actions.
When a partner is liable for harming the business or partnership, Florida law provides that an injured partner may sue for civil relief. However, there can be situations when the parties decide to resolve their issues outside of court.
If you believe your partner has breached their agreement or duties to the partnership, you should review your case with an experienced Florida business attorney. Your counsel an help you evaluate the facts and determine your remedies under the law.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent small business clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.