Why You Need to Hire An Attorney To Help You Handle A Business Dispute
Barrett has obtained millions of dollars in plaintiffs’ verdicts and settlements for his clients in personal injury and business disputes throughout the state.
Entering a new business venture can be exhilarating and lucrative simultaneously. However, disagreements will inevitably arise amongst business partners at some point. And the hardest aspect is figuring out what to do if you become a victim of a partnership conflict.
Even though you might be able to resolve some issues between you and your business partner, a seemingly insignificant matter can turn into a courtroom brawl without an experienced lawyer to guide you.
These are some reasons why a business dispute attorney can be helpful in case of a partnership dispute.
To Help You Handle a Breach of Fiduciary Obligation
Business partners owe one another fiduciary obligations of honesty and loyalty. Thus, partners must act in the partnership’s best interests. According to South Carolina law, a business partner may violate fiduciary obligations in situations like:
- Making an effort to outbid the partnership.
- Failing to reveal a conflict of interest.
- Operating a business with complete neglect.
- Taking advantage of business opportunities for oneself.
- Irresponsibly putting the partnership at risk.
- Withholding crucial information about the firm from other partners.
- Failing to account for profits to the partnership.
- Representing opposing parties.
- Failing to handle the company’s operations properly.
- Making trade secrets of the company public or engaging in trademark or copyright infringement.
Actions such as mismanagement of partnership finances or any illegal activities are also aspects of violation of fiduciary obligation. When these actions cause damage to you or the business, you can consider filing a lawsuit. At this point, you will need an experienced business dispute lawyer to help you get an injunction, punitive damages, or obtain compensation.
To Help in Disputes Related to the Mismanagement of Partnership or Corporate Assets
Mismanagement affects the majority of commercial organizations frequently. Its detrimental effects on partnership deals are severe and may lead to disagreements between the two partners involved. For instance, your business partner might utilize the company’s credit card to meet their spending requirements. Or they might even take your valuables and employ them for their own wants without contacting you. Such actions can be draining, particularly regarding cash flow and profit share. They may also hinder you from carrying out your obligations to investors.
If the practice continues, it would be prudent to get legal assistance from a business dispute attorney, who can help you realize your alternatives and find a solution that protects the company.
To Provide Guidance on Disputes on How to Operate a Partnership or Corporation
While a partnership might sound profitable for most investors, key challenges may arise. Some of these are related to:
- Dispute of how to employ business resources.
- How to utilize or share revenues generated from the business.
- Conflicts related to the decision-making process.
- How to create and define the company’s short-term and long-term objectives.
- Disputes related to business management and share of authority.
Some partners avoid these disputes by drafting and outlining a partnership agreement to address these challenges. However, there may be a lack of a partnership or operating agreement, an imprecise deal, or a dispute about how the contract should be interpreted in the given circumstance.
In such a situation, you would need the assistance of a partnership dispute attorney to help you and your business partner agree. An attorney can help you negotiate a new partnership deal or modify your existing one.
To Help You Sue Your Business in Issues Related to Contract Violation
Another common reason you may need a partnership or corporate dispute lawyer is to help you sue a business partner who violates contracts. When you enter into a business partnership, you may have more than one contract with your partner, including:
- Operating clause
- Employment agreement.
- Partnership contract
- Nondisclosure contract
- Non-complete clause
To Help You Expel Problematic Partner
Sometimes a partnership may become difficult to manage because of one of the partner’s actions, such as professional misconduct or violation of the partnership clause. In such circumstances, excluding the other partners may be a smart move to rescue the business from collapsing.
However, this is something that you will have to seek help from an attorney, who will ensure that you conduct all the processes per the partnership agreement. Your attorney can help you pursue a court order excluding the partner for misconduct.
To Help You Terminate A Partnership or Operating Agreement
A partnership may be bound to break when things become unworkable. And it may turn up to be a major business dispute between partners, especially when they fail to agree on crucial matters like how to share assets or pay debts related to the partnership.
In this case, a business partnership lawyer can help dissolve your partnership and ensure that all assets and liabilities are equitably distributed.
It doesn’t matter your situation; it is a wise step to consult with an experienced business partnership lawyer when terminating a partnership to guarantee sure that your interests are safeguarded.
Consult A Partnership Dispute Attorney Today
At Brewer Law Firm, we have years of experience in helping Charleston, SC residents with business and commercial litigation and all types of business disputes. We represent companies and individuals to prosecute claims and counterclaims in high-stake business disputes. Our services are tailored toward helping you articulate your story in a trial. We aim to maximize outcomes, regardless of whether through settlement or trial. Contact us today to help you handle a business dispute or draft a strong partnership agreement.