Clients often ask our business lawyer Orange County questions about resolving partnership disputes so that they can effectively operate their companies. We advise them that an effective resolution depends on the following factors:
- The clarity of the operating paperwork
- The willingness of legal counsel to work out differences
- The personality of each partner and
- How invested each partner is in the business.
Prevention is the Best Medicine
By setting up the paperwork correctly in the first place, you can prevent numerous disputes. Limited Liability Corporations, or LLCs, should have documents that list each person’s role, how income and profits will be distributed, capital contributions, how new investments will fund the company, the value of each business party should circumstances change and matters relating to the dissolution of the business. The documents should be drafted to spell out legal strategies so that problems are avoided before they even happen. By tending to these issues when the parties are cooperating and establishing the business, you can avoid the emotional turmoil that might happen down the road.
How Personal Relationships Affect the Partnership
In many cases, partners are related or close friends. If they have a dispute, a seasoned lawyer will help you focus on the main issues instead of becoming distracted by emotional matters. Your attorney might suggest several options to dealing with the dispute. First, he or she will listen to your goals in order to determine how to reach the best outcome for all parties. Negotiating is usually the quickest and least expensive option, and the parties might consider arbitration or mediation instead of litigating the case.
Contact Our Business Attorney Orange County
If you need help drawing up partnership documents, contact Daily Aljian LLP, our business lawyer Orange County.