Get the Advice and Representation You Need from an Experienced NYC Partnership Dispute Lawyer
Partnership disputes can threaten both professional and personal relationships. They can involve a wide range of issues, and, in many cases, they can lend themselves to various potential resolutions. To achieve the most favorable resolution in light of the circumstances at hand, partners need to make sound and forward-thinking decisions, and they need to work with an experienced NYC partnership dispute lawyer who can guide them forward with confidence.
At Knox Law Group, we have extensive experience handling partnership disputes in New York City. We represent partnerships and individual partners, and we provide representation for settlement negotiations, mediation, arbitration, and litigation. As with all matters we handle, we take a cost-conscious and client-first approach—and we focus on achieving favorable resolutions for our clients as efficiently (and, when desired, as amicably) as possible.
Types of Partnership Disputes We Handle
We handle all types of partnership disputes in New York City. This includes (but is not limited to) disputes involving issues such as:
Borrowing and Outside Equity
Disputes over-borrowing and outside equity often arise when partners disagree about the financial direction of the business. One partner may want to seek external investment to fund growth, while another may oppose giving up equity or taking on debt. These disagreements can create tension, especially if the partnership agreement does not clearly define how such decisions should be made. Resolving these disputes often involves reviewing the partnership’s governing documents and negotiating a mutually acceptable financial strategy.
Breach of Fiduciary Duties or Duty of Care
Partners owe each other fiduciary duties, including loyalty, good faith, and care. Breaches of these duties—such as a partner prioritizing personal gain over the partnership’s interests—can lead to significant business disputes. Examples include misappropriating funds, engaging in competing ventures, or failing to perform necessary tasks.
Capital Contributions and Investments
Disputes over capital contributions and investments can arise when partners disagree on how much each partner should contribute or when one partner fails to meet their agreed-upon obligations. These disputes are particularly common in partnerships where one partner handles daily operations while another provides the bulk of the financial investment.
Distribution Rights and Partner Compensation
Disputes over distribution rights and compensation often stem from differing views on how profits should be shared. When one partner feels their contributions are undervalued or that distributions are unfair, tensions can escalate quickly. These disputes frequently require an analysis of financial records and the partnership’s governing documents to determine the appropriate course of action.
Partner Negligence and Liability
When a partner’s negligence harms the partnership, it can lead to serious disputes. For example, a partner’s mismanagement of resources or failure to fulfill professional obligations can expose the partnership to legal or financial risks.
Ownership and Control Rights
Ownership and control rights disputes typically involve disagreements about decision-making authority or the division of ownership stakes. These disputes can arise when one partner seeks to make unilateral decisions or when the partnership agreement lacks clear guidelines on governance.
Again, these are just examples. As mentioned above, partnership disputes can involve an extremely wide range of issues, and the options available for resolving these issues vary case-by-case. Daniel Knox can assist with identifying all potential claims and defenses in your dispute. Then, he can help you make informed decisions about how best to proceed.
Potential Remedies in NYC Partnership Disputes
When facing a partnership dispute, it is important to carefully consider the remedy (or remedies) you wish to pursue. Is there hope of (and a mutual desire for) reconciliation? Or is it time for you and your business partner to go your separate ways? The answers to these questions will determine how best to approach your dispute—not only in terms of the means of dispute resolution but also in terms of viable remedies. Broadly speaking, potential remedies in partnership disputes fall into three categories:
Injunctive Relief or Specific Performance
Injunctive relief or specific performance is often sought when immediate action is needed to prevent harm to the partnership. For example, a court may issue an injunction to stop a partner from taking unauthorized actions or require a partner to fulfill their contractual obligations. This remedy is particularly useful in disputes involving breaches of fiduciary duty or improper use of partnership assets.
Monetary Damages
Monetary damages are a common remedy in disputes where a partner’s actions have caused financial harm to the business. These damages can compensate the partnership for lost profits, misappropriated funds, or other financial losses. In many cases, proving the extent of the harm requires thorough documentation and expert analysis.
Dissolution of the Partnership
When disputes are irreconcilable, dissolving the partnership may be the best option. Dissolution involves winding up the business, distributing assets, and settling liabilities. While this remedy marks the end of the partnership, it provides a clear resolution and allows partners to move forward independently. The dissolution process must be carefully managed to ensure compliance with New York real estate laws and business regulations.
Of course, an amicable resolution is also possible; in many cases, it will be in all parties’ best interests to target a settlement that keeps the partnership intact. Daniel Knox can help you decide how to proceed, and then he can take all necessary and appropriate legal steps on your behalf.
Schedule a Confidential Consultation with NYC Partnership Dispute Lawyer Daniel Knox
If you would like more information about our partnership dispute practice in New York City, we invite you to get in touch. To schedule a confidential consultation with Daniel Knox, please contact us today.