Don’t allow member disputes in an LLC to disrupt business and cause damage to the relationships between members in an LLC.  Small disagreements can become big disputes that may ultimately result in a lawsuit between the members.  This is unproductive from multiple perspectives:

• Company resources
• Business focus and new business development
• Money
• Innovation and leadership

When a dispute erupts between members in an LLC all other business functions seem to take a back seat.  The Watkins Firm brings 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 with our clients to resolve differences and genuine areas of disagreement and principle.  Don’t allow member disputes in an LLC to disrupt business, damage important relationships and reduce productivity.

The experienced small business litigation team at the Watkins Firm takes a unique approach to resolving disputes between the members of your LLC.  We begin by helping our clients to establish goals and objectives regarding the dispute.  How would you like to see things resolve?  What changes do you think need to take place?  Is the current model for distribution of labor and profits working efficiently?  Is the essence of the dispute evidence that it may be time to bring in another party with additional experience or expertise in one aspect of the business?  Do we need to help develop new sources of investment?

The Watkins Firm is able to resolve the vast majority of our LLC dispute cases through effective, leveraged negotiation.  We work to document the facts and damages and develop a thorough chronology of events.  These are the tools required to gain the attention of opposing parties (and their counsel) and guide negotiations between the principles themselves or on behalf of our client(s).  This is the fastest and least expensive path to resolve any dispute between business owners and partners.

Don’t allow member disputes in an LLC to disrupt business by distracting the parties from the critical task of effectively running the company.  This makes it even more difficult to see through the smaller issues and get to the core areas in dispute and resolve them.  Our seasoned team will work to negotiate a timely and cost-effective solution that accomplishes the goals you’ve established.  We provide our counsel and insight, and help to identify solutions that have worked for others facing similar challenges.  In most cases these disputes are a sign that the business is on the edge of growing and we simply need to help negotiate a path through the dispute.

Pro-Tip: “Business owners and members in an LLC usually won’t cause disruption unless it’s worth something. If you don’t have an operating agreement, or you have a weak operating agreement and, members have broad discretion to do a lot of things, and they’re getting ready to do some questionable things, to make a big profit, and you come along and say, ‘wait a minute, I think something’s wrong here.’ And you pose an objection. Well, before you file a lawsuit, the opportunity for the other member to do what they want to do is still there. So if you are the squeaky wheel right away, before they go forward with whatever they’re doing, then you may profit from that. But if you’re not, then it’ll just happen. And instead of sharing in the profits, you’ll be fighting to claim you had rights to get some money back.

Well, in the squeaky wheel scenario, the member asks ‘what’s this’ and ‘what’s that.’ Often a dispute starts to brew and then they come to us. Usually we can help our clients to guide the conversation, and if not, if we don’t get cooperation, we’ll file a lawsuit immediately. Or if we do get cooperation, we’ll look at it and we’ll try to work out the differences between the parties. Sometimes that’s all it takes is, is somebody in the middle to explain things to our LLC member client and their business partners, and to go back and forth and, and educate both sides on what’s wrong and how to fix it.” – Dan Watkins, Founding Partner

If you are involved in a member dispute in an LLC we invite you to review our podcast Episode 14 – Members and Shareholders’ Rights as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.  We will work with you to protect your investment and rights, as well as the relationships with your fellow LLC member-owners, get core issues on the table and develop solutions that help to move you and the company forward again.