Are you involved in a dispute with a business partner? Disputes between business partners can put your company in jeopardy quickly. Disputes between partners drive a wedge between critical managers of your company, distracting you from the primary focus of managing the business.
There are Many Reasons for a Dispute With a Business Partner
There are many reasons for a dispute with a business partner in a San Diego or Southern California company. Disputes between business partners, shareholders or members in an LLC can arise for a number of reasons, including:
- One party feels the other is not carrying their weight
- Concerns about commingling of funds and assets
- Theft of company money or property
- Disagreement about direction of the business
- Cash Flow / Money Issues
Whatever the reason for the dispute, it is important for business partners to find common ground and resolve their differences before a small dispute becomes a genuine issue leading to a lawsuit. The attorneys at the Watkins Firm have advised thousands of business partners across our more than four decades of service, and in many cases partnership disputes can be quickly and positively resolved. Our unique approach to disputes fosters a positive and constructive working atmosphere while we get to the core of the dispute and negotiate to resolve it.
In some cases the other party is unaware of the issues at hand, and it is a matter of bringing it to their attention, setting new expectations and locking those in place with appropriate agreements. You should never confront a business partner if you suspect them of commingling or theft. Our experienced team will work with you to gather the information necessary to document the issues at hand, and develop a strategy to accomplish your goals while protecting the integrity and viability of the company.
In some cases, one of the partners needs to exit the company. How is that handled? Do we need to attract new investors to resolve money challenges and provide necessary working capital?
Resolving a Dispute with a Business Partner
What are the steps for resolving a dispute with a business partner and how can the proven, successful trial attorneys at the Watkins Firm help? What is our unique approach to disputes and business lawsuits and how does this save time and money?
It might surprise you to learn that the Watkins Firm is able to resolve the vast majority of our business partner disputes and general business disputes through effective, leveraged negotiation. This is the fastest and least expensive path for resolving the dispute at hand.
When negotiations are unsuccessful, and the dispute is serious in nature the next step is usually a lawsuit. This is not a reason to hit the panic button, it is simply a step in the process. Business mediation is one of the next steps in the process after the filing of a lawsuit (although it may precede a lawsuit). Mediation is a confidential, private setting which keeps your business, personal and financial information out of the public record. The mediator works between the parties to help understand the strengths and weaknesses of each party’s position. The mediator will help to identify potential options to resolve part or all of the dispute. The goal of mediation is a settlement agreement. The settlement agreement will memorialize any of the agreements reached in mediation. Mediation resolves the majority of partnership disputes which cannot be managed by leveraged negotiations alone.
Many operating agreements, partnership agreements and shareholders’ agreements specify arbitration as an alternative to taking the case to trial. Arbitration in these cases is almost always “binding.” This means the ruling of the arbitrator is final and cannot be appealed. You only have one shot to make a strong case in arbitration and this is why you need a skilled trial attorney from the Watkins Firm by your side. Arbitration eliminates many of the unnecessary steps of a trial, but incorporates a lot of the same principles and steps. The arbitrator is selected by both sides and establishes the process which the arbitration will follow (usually a short process of a few days or weeks). The arbitrator marshals evidence and testimony in short order, applies the law and renders their final judgment or “award.”
It is very rare for a dispute with a business partner to go to trial, however, the Watkins Firm have a long, proven and successful trial record across dozens of trials over 40+ years. We are fully prepared to represent you in any venue in order to protect and accomplish your goals and objectives.
Contact a Proven Partnership Dispute Resolution Attorney Serving San Diego and Southern California
The Watkins Firm has served the San Diego business and medical business / healthcare community for more than 40 years. If you are involved in a dispute with a business partner we invite you to review our Podcast Episode 11 – Resolving a Business Dispute as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today. Learn about our proven track record of successfully resolving conflict and disputes in other situations like yours, and the efficient cost-effective strategies that work to resolve these differences and position a company for continued growth.
