Experienced Business Partnership Litigation Attorneys in Redwood, California
Partnerships are fundamental to the business landscape. A good collaboration with a trustworthy and reliable colleague can help you create a business that can flourish. However, disputes within your partnership can quickly ruin everything you’ve built together. That’s why it’s so important to approach partnership litigation with care.
The right attorney can help you resolve your dispute fairly, efficiently, and effectively, and save your business in the process. The expert attorneys at the Law Offices of Katherine R. Moore, in Redwood, California, have the knowledge and experience necessary to navigate all the complications that can arise in a business partnership.
What Counts as a Business Partnership?
There are many kinds of business litigation. Partnership litigation is unique because of its specific connection to the business partners’ relationship. Partners typically have equal standing, so they must cooperate to keep the company running.
In general, a partnership is present when two or more parties work together to form and run a business. Partners can be natural persons or corporate entities; what matters is that they work in tandem to make decisions about topics such as ownership structures, distribution of profits, and other fundamental financial and legal considerations.
There are three primary forms of partnerships recognized in California:
- General partnerships: This is the most common kind of business relationship. It involves two or more equal partners who have substantially similar rights and responsibilities to a company. They don’t necessarily require a written contract to be formed. It’s enough that the partners carry on a company with the intent to share profits.
- LLPs: Limited liability partnerships do require a formal agreement. The partnership sets up liability limitations, protecting all partners from being held fully liable for any legal issues with the company.
- LLLPs: “Limited limited liability partnerships” (LLLPs) function like LLPs, with liability protections for everyone involved. However, they also restrict the rights of some partners by naming at least one general partner and at least one “limited” partner. General partners have all the rights of a partner in a general partnership. Limited partners, on the other hand, have fewer rights but also fewer responsibilities for the running of the company. The specific details are determined by the agreement used to form the company.
Types of Partnership Disputes
Whether you have a general partnership, an LLP, or an LLLP, you could face many potential disputes. Some of the most common reasons for litigation include:
- Breach of Contract: If a company has a legal agreement underpinning its formation, breach of contract is a real risk. If any partner fails to uphold their end of the deal, they may be held liable for breach of contract.
- Breach of Fiduciary Duty: Possibly the most common reason for partnership litigation, breach of fiduciary duty occurs when one of the partners fails to properly and appropriately manage the business’s finances. This includes everything from misusing company assets to mishandling liabilities that leads to financial losses.
- Authority and Behavior Disputes: Business relationships work best when everyone is on the same page. If you and your partner disagree on managing the business, you may face a legal dispute. For example, it’s common to require legal assistance to determine who has the authority to make final decisions and who may censure someone for inappropriate behavior.
- Fraud: If your partner is defrauding your company or customers, you have an immediate need for legal help. An experienced business litigation attorney will be necessary to help you resolve issues like embezzlement or theft by your partner.
- Dissolution: If you need to close your company for any reason, you need legal assistance. Whether you’re ending things over personality disputes or something more critical, getting help from an experienced business litigation attorney is necessary to end things smoothly.
Contact the Law Offices of Katherine R. Moore for Help with Partnership Litigation Issues
Partnership disputes are unfortunate but not uncommon. If you’ve found yourself in an argument with your business partner, it’s vital that you get legal assistance sooner rather than later. An experienced partnership litigation lawyer can help you resolve your dispute quickly and effectively.
At the Law Offices of Katherine R. Moore, our qualified team has years of experience helping entrepreneurs like you handle disputes of all kinds. We are available to help you move past your dispute through mediation and partnership litigation. You can contact us at our Redwood, California offices today to schedule your consultation or learn more about how we can help you move forward. We are happy to represent businesses around California.