In today's Freedom Friday blog and email newsletter, I want to talk about a topic that I get often asked about, in one form or another, and that is partnership disputes.  This sometimes comes up as a litigation question, but sometimes it's not being litigated at all.  Sometimes its mutual and business partners are just deciding how someone can depart the business in a peaceful manner.  However, sometimes the question is how someone can be removed from an LLC, because one of the “partners” is causing a problem.  So, in today's Freedom Friday blog and email newsletter, I'm answering the question, “How can I resolve a partnership dispute?”

The best way to resolve a partnership dispute is avoid a dispute to begin with.  The more detailed the terms of an LLC operating agreement, corporate bylaws, or a partnership agreement, the better.  A well-written operating agreement for an LLC or partnership agreement will offer detailed guidance on how to handle disagreements in the business partnership or LLC.  In the meantime, there are both formal and informal ways of resolving partnership disputes.  Here are three (3) ways to resolve partnership disputes:

1.  Clear Communication

The most important aspect of successful resolution of a partnership dispute is clear communication.  In order to effectively communicate, business partners must set aside their emotions, communicate clearly, work to see each other's viewpoints, be willing to compromise, and brainstorm solutions.

2.  Mediation

A second way to resolve partnership disputes, other than clear communication amongst the business partners, is through mediation.  If conversations between partners are not effectively resolving the dispute, the next best approach is mediation.  Mediators have the ability to neutralize emotionally charged conversations.  Mediators also can help the parties understand that they're being rigid or unreasonable.  You need to find a mediator skilled in business mediation.  They may be able to use their background to suggest resolutions which you and your partners may not have considered.

3.  Going to Court

If a partnership dispute cannot be resolved through effective and clear communication between the partners or by mediation, then the partnership dispute will often end up in court.  If this is the situation, then as a small business owner, you need to consult with a business attorney as soon as possible.  There are advantages to being the party to file suit in a partnership dispute case.  However, even if you end up being sued, an experienced business lawyer can review your case, and you may be able to file a counterclaim to protect your rights. 

Thinking about starting a small business?  Or maybe your small business is having issues with contracts, leases, business partners, collection issues, or experiencing other barriers to growth?  Please contact me at [email protected] to schedule a FREE strategy session.

For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/