Are you concerned about resolving a dispute within an LLC in San Diego or anywhere in California?  What is the best strategy to resolve a dispute between members in an LLC in a timely and cost-effective manner? Disputes and areas of disagreement are quite common in LLCs.  These differing perspectives can be quite healthy and often lead to forward progress for the business at hand.  In other cases they can become quite consuming, distracting the principles and those who work for the company from the primary mission of the business.

3 Key Takeaways Regarding Resolving a Dispute Within an LLC:

• A dispute between the members (owners) in an LLC is quite common.  There are several common reasons for a disagreement between the owners of the company.
• Look for a law firm with proven strategies to quickly and cost-effectively resolve the dispute at hand, while protecting the viability and operations of the business.
• Issues about member responsibilities, outgrowing the skills of the owner(s), disputes about money, may require a restructuring of the business, or a buy-out of one or more members.

Decades of Experience Resolving a Dispute with a Member of Your LLC

The Watkins Firm has more than four decades of experience and proven successful strategies for resolving a dispute with a member of your LLC.  We take a unique approach to these disputes which is designed to accomplish our client’s goals while resolving the challenges at hand quickly and efficiently.  Your Watkins Firm attorney is able to resolve the vast majority of our cases involving disputes between members in an LLC through effective, leveraged negotiation.  Your Watkins Firm attorney will gain a thorough understanding of the dispute and your specific goals for the situation at hand.  We develop a thorough, well-documented chronology of events and a mastery of potential damages.  These tactics are designed to quickly gain the attention and participation of opposing parties and open constructive negotiations.

We understand the unique nature of the relationships between members in an LLC.  We understand in many cases these involve close friendships or family associations.  We work to protect (and in many cases repair) important relationships while getting to the core of the dispute at hand.  We help to put a stop to destructive behavior and practices such as commingling of assets or other behavior which is contrary to the best interests of the LLC.

Pro-Tip: “What are some of the most common things that might lead to a dispute between members of an LLC or shareholders?

Well, there’s a lot of things. They are going to be in disagreement over and very widely. But one universal thing we found after almost 40 years of doing it is once the company starts making money, people will naturally rationalize their position to allow them to make a larger share of that money. Right? Once it starts making money it’s worth fighting over.

We want to get the facts down and we want the evidence they have in chronological order, because that’s the best way to communicate to the other party, to a third party, to anyone is in chronological order. That’s how we think. Then I want to help our clients analyze the damages. Whether you are feeling like they owe you something, they’re not complying with the agreement or vice versa. So I want to want something more from you than just to analyze the damages, we need to analyze what it’s going to cost to fight. And also look at the future business, and whether we can and should salvage this relationship, all of those important things should come into play.  We want to help solve your problems, and give good advice.

Knowing the facts, the damages, the law of the damages is key, because that gives your lawyer the ability to predict what would happen if you went to trial tomorrow and you won, what would you win? That’s it, that’s the number. Because in civil court, we’re only considering dollar amounts, and getting to an agreement, and understanding human nature. That’s another thing, right? Preparation for my clients has to do with the law, and damages, and the facts, getting all the facts down in chronological order and thoroughly documenting them.

If you’re going to stay in business with each other, then you’re going to want additional clauses and assurances that this thing won’t happen again, you’re going to want to give some kind of compensation or power, change the structure, do something to improve the situation. Those things we can handle because we have a transaction team here too. So when we acquire business, we’re already putting those kinds of clauses in. So you might be in a business dispute with a partner because you didn’t have those types of clauses in your operating agreement to begin with. And perhaps the resolution of your lawsuit will be having proper paperwork to go forward.” – Dan Watkins, Founding Partner

Is It Time to Re-Evaluate Responsibilities?

In some cases these issues revolve around misunderstandings regarding responsibilities and production or the distribution of profit.  In many cases these disputes grow out of success.  The business may grow beyond the existing capabilities of one or more of the members of an LLC.  How can you protect the company while resolving the issues at hand in a productive and efficient manner?  Our experienced attorneys work to negotiate a resolution which establishes a foundation for forward momentum.  When necessary we represent clients in mediation and arbitration.

If you are interested in resolving a dispute with a member of your 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.

Meet Dan Watkins:

Daniel W. Watkins is a true people person who sincerely listens. He cares deeply about what others are going through.  Dan enjoys digging into the facts and finding creative solutions to problems.  He contributes his insights candidly and constructively.

Dan’s interest in people make him deeply invested in every relationship and his exuberant personality makes him a true litigator. Dan fights for his clients with a fierce and calculated commitment.

Dan has practiced in the areas of business, medical practices and healthcare business, high tech/science, real estate and employment defense law since 1987. He is a trusted litigation strategist and true trial attorney with over 50 jury and bench trials to his credit. Dan has successfully represented both large companies and individuals and achieved substantial victories in well-publicized trials throughout California and the U.S.

He is experienced in business and corporate formation and administration, as well as all forms of alternative dispute resolution, including binding arbitration and mediation.

THE ROAD TO BECOMING A BUSINESS LAWYER AND LITIGATOR

Dan has almost 40 years of experience working with, for and against some of the largest insurance companies in the country. He has successfully tried and litigated cases in the areas of Healthcare Compliance, Commercial Litigation, Unfair Business Practices, Fraud, Breach of Contract, Battery, Premises Liability, Product Defect, Medical Malpractice, Discrimination, Sexual Harassment, Construction Defect, as well as Unfair Competition, Defamation, and Trade Secrets.

In December 2003, Dan commenced litigation against Health South Surgery Centers-West, Inc and its’ subsidiaries, exposing the company’s extensive mismanagement and misconduct of its’ surgery centers. Dan has also been asked by some of California’s largest municipalities and corporations to conduct legally required investigations into matters involving alleged employment discrimination and harassment.