Partnerships offer many benefits to small business owners. But when a dispute between you and your partner(s) gets out of hand, you may need the services of a New Jersey lawyer.
Any dispute could result in unfortunate consequences, including the dissolution of your business. But at Gearhart Law, we’re here to protect you and your interests from the worst-case scenario. Our legal team has a long history of helping business owners navigate disputes in the best way possible. Contact us at the first sign of serious trouble to consult with an attorney about your legal options.
The Cause of a Dispute
All partnership disputes have their root cause. And identifying yours is often the key to resolving it. In the best-case scenario, a disagreement is caused by a simple misunderstanding, and correcting it resolves the problem. But of course, most business conflicts are not so simple.
With that in mind, our attorneys will discuss the details of your situation with you during your initial consultation to determine what is in dispute and why. We will also take the opportunity to examine the partnership agreement you have in place. Sometimes, the solution to the conflict can be found in the contract you have with your partners.
Resolution Options
Typically, partnerships are formed between those who agree on most aspects of a business. That often means that most disputes are resolved with minimal difficulty. However, partnerships can also create friction that grows over time, causing even a relatively small dispute to become a difficult issue to resolve.
The following are some options that we consider when significant, ongoing partnership disputes are brought to our attention:
Mediation
Typically, the best solution to a partnership conflict is to negotiate a compromise between the parties involved.
For example, if you want to make a commercial transaction with company X but your partner prefers company Y, there may be a middle ground where you work with both companies. Mediation can be an effective way to reach that middle ground. It inserts a neutral party into the discussion who can help remove any anger from the negotiation process.
Arbitration
An arbitration process is similar to that of mediation, except both sides agree to accept the decision of an arbiter to resolve the dispute.
Arbitration is also similar to filing a lawsuit and allowing a judge to decide on the issue at hand. The difference, though, is that arbitration usually costs less and has fewer formal mechanisms. It also offers a better chance of preserving the partnership than the other remaining options.
Dissolution of the Partnership
If a dispute is serious enough, you may have to accept that the partnership is going to fail. In that case, dissolving the partnership under the best terms possible may save you a lot of stress, money, and time.
Our attorneys have plenty of experience with business law and can help you dissolve the partnership as cleanly as possible. We’ll help you fairly split assets and liabilities and attempt to make the dissolution as painless as possible.
Litigation
The most extreme option to pursue regarding partnership disputes is litigation, as it all but guarantees that the partnership is over, regardless of the results. However, it is not cheap, nor is it a quick process. Most business litigation will take years to resolve, and you will only get compensation at the end of it.
Nevertheless, it may be the only way to resolve a dispute, especially if your partner is in breach of contract. Our legal team will examine the facts of your case and determine whether litigation represents the best path to take regarding your situation.
Discuss Your Options Before Acting
A dispute with a partner may seem a lot more serious than it is. With that in mind, and before doing anything drastic, discuss your case with our legal team. You do not want to make a long-term decision based on short-term anger.
The New Jersey lawyers at Gearhart Law will help you fully understand all aspects of your dispute and what legal options you have. We will always guide you to find a solution that is as beneficial to you as possible. Regardless of whether it can be resolved through negotiation or litigation, our team always has your back.
Contact Gearhart Law in New Jersey for Partnership Dispute Resolution Today
If you have a dispute with your business partner that you believe may soon get out of hand, do not wait to speak to an experienced attorney. Contact Gearhart Law today to schedule a consultation with a business lawyer who knows how to handle partnership disputes in New Jersey.