If you began a business with a partner in Atlanta, you likely entered that relationship fully trusting in your partner and excited to share a dream. However, over years, people and motivations can change, and disagreements are likely to arise. Many disputes can be solved with proper communication.. For disputes that cannot be resolved, an Atlanta business litigation attorney may be the only way to move forward.
Throughout three decades as leading fiduciary attorneys for the state of Georgia, the attorneys at Gaslowitz Frankel LLC have seen how partnerships that started friendly and cordial can devolve over time into fractured relationships. If the partners failed to plan for contingencies at the onset of the partnership, this may lead to one of several common disputes down the line.
Related Article: Business Disputes: When to Bring in a Lawyer
Common Causes of Partnership Disagreements
The reasons business partnerships fall through are as numerous as the types of business agreements that exist. Generally, common reasons for disagreements include:
Misappropriation of Money or Assets
If a partner is found to be stealing or misappropriating funds, this can cause a major rift in a partnership. Misappropriation of funds is a breach of trust among partners, and oftentimes, the perpetrating party may be held criminally responsible. Even if the situation does not call for a criminal prosecution, a lawsuit will likely be necessary to recover the losses.
Authority and Role Delegation Disputes
If partners failed to adequately define roles and responsibilities at the onset of the partnership, disputes may arise regarding who is responsible for what aspects of a business further down the road. Additionally, most partnerships work better when there is an agreement made in the beginning setting out each party’s duties and authority. When business partners do not have an established decision hierarchy, litigators may be needed to resolve disputes.
Breach of Fiduciary Duties or Fraud
Partners are obligated to fulfill their fiduciary duties to one another – this means that they must act in the best interests of each other and the business. If a partner is found to abuse their position through self-dealing actions, this may be grounds for a lawsuit.
Dissolution or Acquisition Disputes
If partners disagree about major decisions affecting the company, such as whether or not to merge the business, or who will have ownership of the business once one or both of the partners step away, they may not be able to resolve the dispute among themselves. . Business dispute litigators are often needed in these scenarios to work through the issues with the partners or file a lawsuit if the parties are at an impasse.
Leading Atlanta Business Litigation Attorney
If you find yourself in a dispute with a business partner, you have legal options, including litigation and alternative dispute resolution, at your disposal. A business litigation attorney like those at Gaslowitz Frankel LLC brings expert experience to your case while minimizing stress and emotional pain.
Our team has the expertise to address concerns business partners have during the litigation process. Gaslowitz Frankel LLC has the passion and authority required to deliver clients with their ideal outcomes.
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