No one hopes or expects to encounter problems in commercial real estate when it comes to partnership agreements. However, partnership disputes can be caused by many different situations, such as declining profits, disagreements over the direction or management of operations, and issues of ego. If the issues cannot be resolved amicably, you may have to resort to partnership litigation to settle your dispute. Partnership litigation can be complex, stressful, and confusing, so it is best if you hire an experienced business law attorney to help you with your case.
Uniform Partnership Act
Partnership disputes in California are governed by the Uniform Partnership Act. Under the Act, partners are allowed to pursue litigation to enforce their partnership rights under a written partnership agreement, enforce their rights under California law, sue to enforce rights of dissociation, compel a dissolution and winding up of a partnership, and to enforce the rights or protect the interests of the partner.
Partnership litigation focused on the written agreement refers specifically to language included in the written agreement signed by partners at the beginning of the business relationship. Oftentimes, the answers to the dispute can be found in the partnership agreement. Enforcing California law in a dispute usually occurs when there is no written partnership agreement because other state laws provide business partners with certain rights. This type of litigation also arises when one partner accuses the other of breaching fiduciary duty and to see the books and records of the company.
Litigation to enforce dissociation begins the process for the buyout of one partner who wishes to dissociate from the partnership, whereas litigation to compel dissolution dissolves the partnership entirely. Dissolution litigation may be triggered by certain events dictated in the partnership agreement, a partner vote, or other event that leads to a partner asking the court to intervene to force the dissolution to take place.
Why You Need a Lawyer
Partnership disputes often involve parties that are very close, either business partners, family members, or co-owners that are disputing issues in court. Partnership litigation is often an incredibly stressful and emotionally taxing time for everyone involved, and having an experienced business law attorney by your side can be beneficial. A lawyer gives you an outside perspective on issues that may be very personal and make it difficult to see the larger picture. An attorney understands the law and will put your best interests first in the litigation. A business law attorney will enforce your rights under a partnership agreement or California law and ensure that you are not being taken advantage of in the handling of the dispute. Finally, a lawyer takes some of the burden of litigation off of your shoulders so that you can continue to focus on the growth and success of your business.