Things do not always go smoothly in business. Sometimes, disputes between partners can arise. When this happens, it can be very detrimental to the business. The business may not run as smoothly as it did when the partners were cooperating with each other, and the situation may create a tense environment for clients, customers, and others who must work with the partners. When these disputes arise, many people try to find a resolution without a partnership dispute attorney, but that may only lead to more problems.
An experienced attorney at Beth Santilli Law in Mt. Pleasant, SC can advise on the different ways to resolve your partnership dispute. Contact us today to request a consultation.
Of course, the best way to handle a dispute is to be proactive and ensure they do not occur in the first place. The best way to do this is through solid corporate documents that are drafted before the partners even enter into business together. Clear documentation can provide a roadmap for partners, and this can even include how disputes are to be handled should they arise. Beth Santilli Law is highly skilled at drafting corporate documents specific to your business, which will help mitigate any possible partnership dispute in the future.
Different Methods for Handling Partnership Disputes
Many people think that when there is a partnership dispute, they must go through litigation to resolve it. This is not necessarily the case. In fact, litigation should be the last resort for partners involved in a dispute. When a case goes to litigation, the judge will enforce remedies under statutory South Carolina law for corporations, partnerships, and limited liability companies, which essentially takes the control away from the partners going through the dispute.
Many partner disputes are handled through mediation and negotiation. Mediation involves a neutral and objective third party mediator that meets with the two sides and tries to foster compromise. Mediation can also help partners determine how to settle their dispute. Common options for resolution include:
– Buying each other out: When the partners do not wish to work together, one may buy the other out. In this situation, the partner who will continue running the business pays monetary compensation for the value of the other partner’s share of the business.
– Selling the company: If neither partner wants to remain active in the business, the partners can sell the company and split the proceeds.
– Splitting the company: If the partners each want to remain active in the business but cannot work together, they may split the company. This is a complex situation, as it involves determining how the business will be split, which partner will run which aspects of the business, and other complicated issues.
– Redefining roles: In some cases, the role of each partner may simply have to be redefined. This may include expanding or decreasing one’s role, or changing responsibilities.
In cases that do enter litigation, it is important to understand that the courts are typically adverse to forcing partners to work together when they no longer wish to. Therefore, the court may likely force a sell of your business regardless of the partners desires.
Get Legal Help Today
If you are involved in a dispute with your partner or partners, it is important to seek legal help. At Beth Santilli Law in Mt. Pleasant, SC, our partnership dispute lawyers can help resolve your dispute. We can also help you to draft corporate documents from the beginning of your partnership so that a dispute does not occur in the first place. Contact us today to schedule a confidential consultation.