Business Partnership Dispute Lawyers
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.
How Are Partnerships Formed?
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:
- Transfer, sale or partnership dissolution
- Business succession and buy-sell agreements
- A partner’s divorce or change in a partner’s personal financial situation
- Routine or major business decisions
- Breach of contract regarding the partnership agreement or other contracts
- Fraud, misappropriation, other business torts
- Adding a partner to the business
- Changing the direction of the company
- Responding to a business opportunity
At King & Jones, our decades of experience in business litigation and corporate and shareholder litigation means our business dispute 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.
For practical legal advice and strategic representation in your partnership dispute in Chicago or across the country, call King & Jones at 312-372-4142 to schedule an appointment with an experienced and successful partnership or business dispute attorney.