As a business grows and evolves, some of the responsibilities, benefits and rights of those who are partners in the business can change, just as the business does.  It is critical when a business partnership is formed that these responsibilities, benefits, and rights are clearly set forth, so that all involved are clear on how each is working toward the common goal of all partners.  However, much like a marriage, sometimes things change, and one or more partners may feel that others are not living up to his or her end of the bargain.  Attitudes may change, as well as various aspects of the business itself.  Eventually, a dispute or disagreement may come about that places the viability and future of the business in jeopardy.

What are some of the common causes of partnership disputes?

Partnership disputes can arise out of issues within the business itself, or personal problems of particular partners.  Some of the issues that can arise in the business often relate to business debt, expansion, financial arrangements, retirement issues, employment problems, profit sharing, or the direction the company is going in.

Personal issues that may arise and cause a dispute or disagreement between partners include divorce, personal finance problems, marriage issues, injuries, illnesses, and more.  When a dispute arises,, it is important that partners come up with the most effective solution so that the result of the dispute is not the dissolution of the business.  While our Los Angeles business lawyers are skilled litigators, we believe that in cases involving partnership disputes, mediation may be a good alternative.

Why mediation?

Courtroom litigation is generally expensive, and in cases involving partnerships should usually be a last resort.  Mediation makes it possible for partners to remain in control of the situation and the results, while an impartial third party provides his or her ideas and suggestions for sorting out the issue in a somewhat friendlier environment.  A mediator can evaluate the situation, and hopefully help partners with amending agreements so that changes are reflected to all partners’ satisfaction.

At the Law Offices of Spotora & Associates our Los Angeles business attorneys are highly skilled in all business matters including partnership disputes, contracts, agreements, and mediation/litigation.