Business partnerships can be formed in a variety of ways. Sometimes, friends or colleagues who work in the same industry may decide to start an enterprise. Other times these relationships begin when business owners decide to enter into a joint venture. Partners can also be added after an entity is formed. As their businesses grow, the interests and needs of partners may change. In some cases, the parties will disagree or have conflict over issues that are material to the business and its operations. Some of these disputes can become complicated and may even result in litigation. Therefore, if you are considering entering into are already in a partnership, it’s essential to consider possible future points of contention. What are the most common partnership disputes?
Florida Partnerships
When partners begin their business relationship, they usually enter a written agreement that will include their respective rights and responsibilities. Often these documents include provisions that will specify how the parties will resolve disputes and end their partnership. Not every partnership will be formed with a written document, however. Some partners opt to form their arrangement and conduct their business according to oral agreements.
Florida Partnership Conflicts
Florida partnerships can experience conflict for a number of reasons. A partnership formed outside of a written agreement may be especially problematic. This is because the terms and obligations are undefined. Without a written agreement, parties may find that they have very different ideas about operating the business. They may also have disagreements about sharing their mutual responsibilities. Those with partnership agreements can also have differences of opinion. However, having a written document to reference may help minimize conflict.
Partnership Responsibilities
All Florida partners have certain obligations with or without a written agreement. These include the inability to:
- unreasonably restrict the right to business records and accounting information,
- eliminate the duty of loyalty, good faith, and fair dealing, and
- eliminate a partner’s fiduciary duty.
Partnership Disputes
Some of the most common types of partnership disputes in Florida include:
- Breach of Fiduciary Duty
- Breach of Partnership Agreement Terms
- Mismanagement
- Breach of Non-Compete Clause
- Misappropriate of Assets
- Embezzlement
- Operating Agreement Violations
- Breach of Trade Secret Agreement
- Breach of Non-Solicitation Agreement
- Improper Executive Compensation
- Dissolution Issues
- Violation of Bylaws
- Self-Dealing
Every business is unique, and it can be challenging to navigate partnership conflicts. If you believe there is an issue with your Florida partnership, you need to discuss the matter with an experienced Florida business attorney. Your business lawyer can help you assess the situation and determine your next steps.
Remedies for Partnership Disputes
Depending on the circumstances, you and your partner may be able to resolve your conflict on your own. However, some disputes may require you to pursue relief in court. Before taking action, you should consult with an experienced business attorney who can help you evaluate your options and available remedies.
Some possible remedies for your partnership dispute may include:
- Recovering damages (compensation) as identified in your partnership agreement
- Removing the partner from the business
- Seeking damages through a court process
- Settling your conflict outside out court
If you are involved in a partnership dispute, you need the advice of an experienced Florida business attorney. Your counsel can help you evaluate the situation and determine your options for protecting your interests.
Contact a Florida Business Attorney Today
Florida business 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 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.