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Can Partnership Disputes be Avoided?

Even some of the biggest and most successful companies have faced their share of internal struggles and disputes among those who were there from the beginning. Some are able to overcome their disputes after a period of disagreement, while other partnerships dissolve under the pressure of internal conflict. However, with good planning, businesses can put a system in place to manage partnership disputes before they become an issue.

Steps For Avoiding or Resolving Partnership Disputes

Even businesses that operate smoothly for years can suddenly face turmoil when issues of disagreement among the principals threaten to tear down everything they have worked so hard to create. Here are a few ideas to consider when starting a business that may help you avoid or overcome times of disruption:

  • Draft and finalize an operating agreement that is signed by all involved parties. It is fine to get started without an agreement, but this should be a priority before partners begin making sacrifices on behalf of the business.
  • Consider and address “worst case” scenarios when pulling together any business agreement.
  • Do not be afraid to walk away if you are unable to secure an agreement that meets your needs.
  • Vet potential partners to ensure their business ethics agree with the way you wish to conduct business.
  • Find partners with skills that complement your skill set. Avoiding redundancies in areas of expertise can help you avoid conflicts.
  • Build a contract that values equality among partners.
  • When working to resolve a dispute, focus on a solution rather than rehashing the issue.
  • Most experts agree that, in addition to corporate counsel, it is a good idea for partners to retain individual counsel when disputes must be resolved.

Whether philosophical, strategic, or economic in nature, operational disagreements – even those kept within the confines of the boardroom – have a way of negatively impacting productivity at all levels of a business. Once a dispute becomes public, it can undermine a company’s reputation among clients and the competition. If disputes cannot be avoided, a quick resolution is the best solution.

Settle Internal Disputes with an Experienced Silicon Valley Business Lawyer

Even minor disputes among partners can result in wasted time and misallocated assets that might be better used for more business-critical activities. To ensure that disagreements among partners do not negatively impact day to day operations, consult with a knowledgeable and resourceful California business law attorney. SAC Attorneys LLP offers the legal advice and knowledge of relevant precedent to help your company resolve most business-related disputes. Call a San Jose business dispute resolution attorney at (408) 436-0789 and set up a time for an initial consultation to discuss possible solutions to your case.


Client Reviews
Mr. Cai Is a Diligent Attorney. My sister and I were defendants in a civil litigation case. We hired James Cai and his law firm, SAC Attorneys LLP. Mr. Cai is a diligent attorney and responded to our questions in a timely fashion. He and his staff were very helpful in keeping us informed of the proceedings of the case and in explaining each step. Mr. Cai is also very conscientious of fees and costs, and avoided unnecessary charges. The results of the Summary Adjudication sided with us. The Court Trial resulted in the “Final Statement of Decision” and “Judgment after Court Trial” overwhelmingly siding with us. Cynthia F.
I Am Truly Impressed. After spending a significant amount of time, money and efforts with my previous counsel at a larger law firm without getting meaningful results, I transferred my employment matter to SAC Attorneys LLP. The attorneys there were able to understand the complex situations of my case and put together an aggressive litigation strategy. We were able to file a compelling complaint within a week and forced the opposing party, which was represented by one of the largest law firms in California, to make a substantial settlement offer shortly thereafter. I am truly impressed by the no nonsense and results oriented approach by SAC Attorneys LLP attorneys. A job well done! X. Gao
They Took Time to Understand Our Technology. I am the founder of a bioinformatics start-up in the Silicon Valley and chose SAC Attorneys LLP as our corporate counsels. Their attorneys have great experience with high tech start-ups and were able to offer a highly competitive service plan while not sacrificing a bit of their quality of services. They took time to understand our technology and provided value added services by introducing investors and job candidates to us. We regard our attorneys at SAC Attorneys LLP not only as our legal advisors but also our venture partners. Dr. Pete S.