Forming a partnership is an excellent way to combine the talent and resources of several different individuals into a single business enterprise. But despite the best of intentions, disputes sometimes arise between partners. When the split in disagreement is exactly 50/50, the problem may seem intractable.
The good news is that a 50/50 dispute does not have to paralyze the company or lead to extreme solutions like dissolving the partnership. Working closely with a knowledgeable Manhattan business law attorney, you can settle contentious issues and move forward. Levy Goldenberg LLP is ready to serve you and your organization.
Common Partnership Disputes in New York
Partners can fail to see eye to eye on many issues that could affect the profitability, liability, and overall trajectory of their partnership. A few common examples include disagreements over:
- Financial decisions: From everyday transactions and purchases to long-term investments and allocation of company resources, any number of financial decisions could trigger a disagreement.
- Control of the partnership: The partners may not agree on who has authority over key business operations and decision-making, potentially igniting a turf war and allegations of breached fiduciary duties.
- Unequal share of work or responsibility: Although the partners will ideally come to consensus on who is responsible for which tasks, there may be disagreement over how much work is required to make the business a success.
- Strategy and vision: Where the business should be headed, in the short- or long-term, requires consensus among the partners to ensure growth and success.
These and other disputes are less likely if the partnership has adopted a comprehensive agreement to govern its operation. If your Manhattan partnership has never adopted such a contract, talk to our business lawyer about drafting one.
Strategies for 50/50 Dispute Resolution
If the partners don’t agree on how to resolve a dispute, they can in most cases simply vote on how to do so and put the issue to rest. This is not true, however, if the partners are evenly divided on the solution. In the event of a 50/50 dispute, the following strategies could prove useful:
- Talk to a lawyer: First, reach out to a business attorney to inquire about your position and whether it makes financial and legal sense. Your attorney can review the issues in dispute, check the partnership agreement (if there is one), and advise accordingly.
- Negotiation: Next, try negotiating your position, through legal counsel, to see if you can reach an agreement with the other partners. Often, the involvement of an attorney can help the parties see issues more objectively and strike a compromise.
- Mediation: If informal negotiation does not work, you may need to submit the matter to mediation. Mediation is the process by which a neutral third-party mediator tries to facilitate compromise and help the parties avoid a lawsuit.
- Litigation: Ultimately, you and the other partners who are in agreement with you may need to file a lawsuit to force the issue. The outcome does not necessarily have to be dissolution of the partnership, and a mediated settlement that preserves the business is still possible.
Helping Your Manhattan Partnership Overcome Challenges
Partnership disputes can be difficult, but with the right legal counsel you can successfully navigate even the most complex disagreements. Trust the dedicated attorneys at Levy Goldenberg LLP to guide your business each step of the way. Complete our online contact form today to get started.