Working in a business partnership, like any close relationship, has its challenges, conflicts and rewards. It’s unreasonable to assume that your partnership will stay the same or you’ll always see eye-to-eye. Not only that, but when the stakes are high and money is on the line, emotions can quickly escalate and turn into heated disputes.
Learning how to navigate disagreements is vital to the success of your business. Even though Arizona doesn’t require business agreements, most small business lawyers recommend writing out and including a process for conflict resolution and partner disputes.
However, if you’re in a deadlock with your business partner and need professional help mitigating conflict, or resolving a dispute, a small business attorney in Phoenix can help. They are experienced at handling business agreements and disputes and are able to resolve the situation in a legal and professional manner. Their goal is to make sure both people are heard and find a compromise that suits both parties. If the business partnership can’t be resolved, they can also help you dissolve the company and make sure your assets are protected.
Whether you need a professional and neutral 3rd party, a strong demand letter sent or lawsuit filed, a small business attorney can advocate for you every step of the way.
Common Examples of Partnership Disputes
In most cases, small arguments will easily be resolved without professional mediation or legal counsel. When problems become persistent, or high value decisions are on the table, partnership disputes can happen and may require more support inorder to obtain a fair and satisfactory resolution.
The following are common types of disputes that may need professional or legal assistance:
- Refusal by one owner to meet the shared responsibilities or duties of work.
- Partnership disputes leading to buy out of one or more of the owners
- Financial management disputes
- Different priorities or visions for the company
- Breach of contract
- Violation of restrictive covenants such as non-compete agreements
How a Small Business Lawyer Can Help
Unfortunately, partnership disputes are inevitable. The good news is, a small business lawyer can help in several ways. First, it’s highly recommended to write a business agreement that includes a process for how to handle conflict, who/when to seek counsel, and what happens when the situation cannot be resolved. This way there is a written agreement and plan of action on how to resolve differences of opinion. A business agreement is something you can draft yourself, or a small business lawyer can create if that better suits your needs.
If you’re stuck at a stalemate and unable to resolve it alone, they also offer mediation services where they act as a neutral third party and help move the conflict to compromise. They can be an arbiter, where they hear both sides, review evidence and make a legal decision that cannot be appealed. They can help you dissolve the company if neither party can agree and wants to go separate ways. Or they can pursue litigation, where they defend your rights and assets in a courtroom, which is a long and complicated process.
In any case, getting professional help from a Phoenix small business attorney should not be your last resort. They can provide legal support and services for every step of the way to help your business be the best it can be.
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