What happens when there are disputes between partners or members in an LLC that affect day-to-day operations or the business itself? The experienced business dispute resolution attorneys at the Watkins Firm understand the costly interruption a partnership dispute can cause, and work to quickly and cost-effectively resolve it.
The first place to look is the partnership agreement, operating agreement, or corporate documents. A well crafted partnership or operating agreement should clearly identify the steps to resolve disputes between partners or members in an LLC and prescribe specific remedies. Unfortunately, many partnerships and LLCs are formed with downloaded forms, or forms copied from the internet, and the operating agreement is not fully developed to handle these issues. Our attorneys quickly gain an understanding of our client’s goals for the situation and work to establish a productive and cooperative dialogue with other parties and their lawyers (if present). We help the parties to understand each other’s perspective and work to find common ground.
Pro-Tip: “Take the time to get the partnership agreement, operating agreement or corporate documents including bylaws the shareholders’ agreement thoroughly reviewed and tailored to your unique situation, up front. If you don’t have a strong agreement and it’s just you and somebody else with a bland agreement, then the party with more power, more resources, and the ability to fight can turn around and argue that the agreements you may have give them more rights and power.
For example, if you are just a normal investor and you don’t have a strong agreement the person in charge can say, “well, I’m an officer now. And I award myself a million dollar a year salary, because I’m that great!” What follows is a rough legal road. You didn’t cover these issues early in the corporate documents and now you need a good lawyer because it’s going to be a fight.” – Dan Watkins, Founding Partner
The Watkins Firm has 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California. We work to quickly and efficiently establish a thorough, well-documented chronology and a mastery of potential damages. These are the keys to gain the attention of opposing parties and their counsel and resolve the dispute. We are able to resolve the vast majority of our cases involving disputes between partners or members in an LLC leveraged, effective negotiation. This is the fastest and least expensive method to resolve a business dispute.
In some cases mediation or arbitration may be required to move the conversation toward resolution. When underlying documents are vague and the parties are on opposite ends of several important and costly issues, business litigation may be required to resolve the dispute and move the parties forward.
The attorneys at the Watkins firm take a unique approach to disputes. We strive to resolve the dispute at each step of the process in the fastest and least expensive manner possible, while achieving our client’s goals and objectives. We are uniquely positioned to represent a client as needed at every step of the process: negotiation, mediation, arbitration, or litigation. Our successful track record in Court verdicts communicates the strength of your position to the other parties and opposing counsel. It’s good to have the experience and proven success across decades of service in your corner.
If you are involved in disputes between partners or members in an LLC we invite you to review our podcast Episode 11 – Resolving Business Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
