What is the best strategy to resolve a dispute with another member in an LLC? Are you involved in a dispute or lawsuit with a co-member in an LLC? How will you resolve the situation as quickly and cost-effectively as possible?
Common Disputes Within the Ownership of an LLC
A dispute with a co-member in an LLC can erupt for many reasons, however, the most common are:
- Questions about money
- Issues about responsibilities and performance of the co-owners or members
- Disagreements over the direction of the company
- Challenges about commingling
The process to resolve a dispute with another member in an LLC can seem a bit overwhelming at times. This is why it is important to reach out for a free consultation at 858-535-1511.
The Steps to Resolve a Dispute with Another Member in an LLC
What are the typical steps to resolve a dispute with another member in an LLC? The experienced business and dispute resolution attorneys at the Watkins Firm have helped business owners to resolve disagreements quickly and efficiently for more than four decades. A genuine disagreement doesn’t have to result in a lawsuit, but you should be prepared in the event a suit is filed against you or your LLC. Our unique approach to litigation is entirely focused on resolving the dispute as quickly as possible, while achieving the goals and objectives of our clients in a cost-effective manner.
It may come as a bit of a surprise that the Watkins Firm is able to resolve the vast majority of business and financial disputes between fellow members in an LLC through effective, leveraged negotiation. This is the fastest and least expensive way to manage this challenge.
Business mediation is another option, especially if a lawsuit is filed between the parties. Mediation is a private and confidential environment that keeps your business and financial information out of the public record. The mediator is selected by the parties and should be an expert in the matter(s) at hand. Usually the mediator will work between the parties to help them to understand the strengths and/or weaknesses of their position and recommend potential ideas for resolving the matter. The parties are not required to implement the suggestions of the mediators, however, mediation is quite often able to resolve a dispute with another member in an LLC.
In challenging disputes and matters of principle the next venue is usually binding arbitration. Binding arbitration is designed to resolve the matter once and for all in a prompt time frame. The decision of the arbitrator will be final and cannot be appealed in the vast majority of arbitration cases. The arbitrator establishes the process for collecting evidence and witness testimony and ultimate issues an award or finding which resolves the matter.
More than 40 Years of Experience Resolving Business Partner Disputes
The Watkins firm has more than 40 years of experience resolving a dispute with another member in an LLC and other business owner disputes. We understand not only the nature of your business but the importance of the relationships beneath the dispute. In many cases we are able to not only resolve the dispute at hand but help to repair the important relationship between the parties. In some cases the bond of trust is broken or there is simply too much damage for the parties to continue. In these cases it is important to not only work out the dispute itself but help the parties to manage the subsequent transition.
We invite you to review our recent 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.
Learn about our strategies to engage in leveraged negotiation while maintaining a productive working relationship with affected parties. We will discuss the options of mediation and arbitration and when they are employed to resolve a dispute or lawsuit with a co-member in an LLC. We will work to develop a strategy that will accomplish your goals for the dispute and ensure that you are informed and in control of every step along the way.
