5 Ways to Resolve Partnership Disputes in Maryland

When a partnership dispute arises, it may be impossible to continue with business as usual. In some cases, disputes may end the partnership. Sometimes, terminating the partnership is the best means to resolve the dispute; however, there are additional ways to resolve disagreements and legal issues. If you are involved in a partnership dispute, contact the Baltimore business litigation lawyers at the Heyman Law Firm for help with your case.

Tips for Solving Disputes Between Business Partners in MD

If you are involved in a partnership dispute, it may seem as though the odds are stacked against you and that there is no way to resolve the issue. Disputes arise for various reasons. Analyzing the cause of the dispute may help you identify the best course of action to take toward resolution. Our Baltimore business advisory attorneys can help you understand which option may be the best for your case. The following examples are some options our attorneys will consider when determining the best way to end your dispute:

Negotiation

In many commercial and business disputes, disagreements may be resolved through negotiation. Working with a business litigation attorney can help you understand the proper tools at your disposal and how to leverage them to resolve the dispute in your favor.

Litigation

If negotiation fails, litigation is usually an option. Partnerships are often in court when a partner does something which violates another partner’s rights under the partnership agreement or commits a breach of contract against other partners. Additionally, poor business acumen or financial negligence in managing the business may harm the partnership’s interests and then a partner may be able to recover compensation for the financial harm from the negligent partner. And, violating the terms of the partnership agreement might give the other partners grounds to sue for damages for breach of contract or to have the agreement set aside. If your dispute results in litigation, it is vital to have a commercial business litigation attorney represent you.

Amending the Partnership Agreement

Some partnership disputes stem from the terms of the agreement. Being locked into a system that does not provide the tools necessary to resolve disputes under the current agreement might indicate that the system needs to change. Depending on the terms of the agreement, partners can usually amend it to achieve the partnership’s goals in a more desirable manner.

If you are already in the middle of a dispute, it may be difficult to amend the partnership agreement. Usually, amendments to the agreement require unanimity among the partners; however, working together on an amendment may be the show of good faith that advances negotiations. Alternatively, consolations may be built into the agreement which allow both sides to benefit from the dispute’s resolution.

Partner Buyout

If the problem your partnership faces is not the system you must work within, then the problem may be one or more of your partners. Buying out a partner is often a complex process that, depending on the type of partnership, may require dissolving and reforming the partnership. In a buyout, you may be able to end the problematic partner’s involvement in the dispute and resolve the issue without their interference. Talk to an attorney about how to buy out a partner, learn whether it is possible to buy out a partner under the terms of your partnership agreement, and see how your partnership can survive the buyout.

Dissolution

If disputes cannot be resolved in a way that permits the partnership to survive, the best solution may be to end the partnership entirely. Forming a new business, such as an LLP, LLC, or corporation, instead of a partnership may give you more powerful tools to approach the situation, limit the control of a problematic partner, or otherwise resolve disputes without completely burning bridges. Branching out on your own or taking your assets, IP, and goodwill to another partnership or business might be a good alternative. Always discuss the effects of dissolution with a lawyer when considering such a drastic course.

Contact Our Baltimore Business Litigation and Partnership Dispute Attorneys Today

If you are involved in a partnership dispute and you cannot figure out how to resolve things, take your case to the Heyman Law Firm. Baltimore business litigation lawyer William S. Heyman and his associates may be able to help with your case and fight for a solution that accomplishes your goals and minimizes damage to your business. For help with your case, call our law offices today to schedule a consultation with our attorneys. Our number is (410) 305-9287.