Partnerships are often created by friends, family members or others in a close relationship. Partners, therefore, rely heavily on each other and owe fiduciary duties to one another. Disagreements are to be expected among partners working in close quarters; sometimes, these disputes require formal legal intervention to resolve. The Chicago partnership dispute lawyers at King & Jones tackle disputes with our clients’ best interests foremost in mind, seeking to resolve their matter in the most efficient and effective manner through negotiations, arbitration, litigation or other means.
Partnerships are a creature of state law. In Illinois, for instance, a partnership is created simply by two or more individuals going into business together, regardless of whether they have executed a formal partnership agreement. A written agreement is, of course, invaluable in preventing disputes or providing guidance as to how they should be resolved if they do arise. Operating under a handshake is fine until something goes wrong. A detailed partnership agreement can help outline the rights of the parties and their obligations toward one another.
State laws recognize different types of partnerships, with different roles and responsibilities depending on the form of organization. The main types of partnerships are:
General Partnerships – As described above, all partners are general partners and are equally responsible to one another for operations, debts and profits of the partnership.
Limited Partnerships – A general partner manages the business, while limited partners invest in the business but have limited liability and no involvement in day-to-day operations. Limited partnerships are common in real estate investments, for example.
Limited Liability Partnerships – All partners have limited liability to the extent of their investment in the enterprise.
Partners owe fiduciary duties to each other and the partnership. They can be sued for breach of fiduciary duty for working against the partnership, siphoning funds from the partnership, or harming the interests of the partnership through their actions. Partnership disputes can also arise at many different junctures in the life of the partnership, such as:
At King & Jones, our decades of experience in business litigation and corporate and shareholder litigation means our lawyers have the knowledge, skills and resources to tackle your partnership dispute ably and effectively. We do more than just present you with options and let you choose; we give you trusted advice on your best alternatives based on years of practical, legal experience handling disputes like yours. We know how to approach the problem no matter what issues are involved.
“I have known Peter King and Bill Jones in this business for decades, and have been involved in cases with them. They are tenacious, exceptionally bright, practical, ethical, and have formidable trial and appellate skills. I have also referred friends and family to King & Jones for commercial and estate litigation and they have always gotten outstanding results. With this firm, you get experienced, well-respected lawyers who care about their clients and always do what is necessary to get the best outcome possible.” – Chuck Hornewer
“These guys just know how to win. Every client with a business dispute, will contest, or breach of contract case deserves lawyers who can take their case into a courtroom and prevail. Peter and Bill have decades of experience, and a unique ability to make a complex commercial case easy for a judge or jury to understand and side with them. I have personally worked in trial with Bill and Peter on behalf of a mutual client. There is no one I would trust more with a commercial case, contract dispute, or will contest than Peter King and Bill Jones.” – Paul D’Amore
“Peter King and Bill Jones are lawyers' lawyers. They are both extremely intelligent and organized. The first thing that I do is call Peter and Bill whenever a complex commercial litigation case crosses my desk.” – William Warmouth