CALIFORNIA PARTNERSHIP DISPUTES
A business relationship can be a precarious one. It is one that affects livelihoods, careers, and was probably built on the back of a personal relationship. These types of relationships can be prone to high emotions, especially if there are differing business philosophies. This means that partnership disputes can arise.
A failing business partnership often leads to a failing business. With around 70% of business partnerships reported to dissolve, you can never be too cautious when it comes to protecting your company. If you choose to enter into a partnership, it is best to have clear and concise expectations from the beginning to avoid failure. But if a partnership still fails, you will need an aggressive lawyer to lead you through litigation. David Schwartz is a strong attorney who will fiercely fight for you in your dispute needs.
Preventing a Dispute
There are several things you can do if your business partnership fails, but you can also take steps to prevent a falling out in the first place. The main thing is to have a written agreement. What do you need in that agreement? Mr. Schwartz provided a list below for you with the answers to that:
The type of partnership (50/50, silent, etc.)
Each party’s roles and obligations
How capital will be arranged
Each party’s compensation
Contingency plans for any and all worst case scenarios
Addressing these issues from the beginning can help prevent a breakdown of your partnership or allow for an easier dissolution. Having all aspects of the business, or possible failure listed, is responsible and will make life easier.
What to Do If the Partnership Fails
Even with planning and setting clear expectations, a partnership can still fail. If this happens, the first thing you need to do is make sure that you are protected. Make sure you have access to all documents concerning your business and contact a California commercial litigation attorney.
In your written agreement you should have an exit plan prepared. Having an exit plan allows for a cleaner break for both parties and gives more hope to the survival of the company. Your company and your assets hold the most importance during this time.
If you do not have an exit plan, you need to take steps to ensure an end to the relationship that does not result in the end of the business. The first step would be mediation. Starting with mediation can allow you to figure out what other steps need to be taken. A mediator has no sides and will help all parties to present their opinions in a non-confrontational way. This can allow you to figure out if you can salvage the partnership or if it is time to part ways.
If, after mediation, you have decided it is time to part ways, you should immediately contact an attorney. If you are in the San Francisco or Southern California area, Mr. Schwartz is an aggressive business litigator with a history of representing his clients well. It is possible you will be able to find a settlement that works for both parties, but if you have to go to court, you need an attorney who will fight for you.
Finding an Attorney
Serving Alameda and San Mateo County, Mr. Schwartz will do what he does best and uphold your rights. If you feel that you are preparing for the fight of your life, he is the attorney for you. With a love for litigation and a head for business, Mr. Schwartz will know just how to protect you. Consult his San Francisco office today if you are needing to dissolve your business partnership.