Business Lawyer Niles Illinois | Options when a partnership dispute arises

If you’re in a business partnership and are unhappy with the success of the business or decisions being made, you may need a business lawyer Niles Illinois. Working together is about mutual respect and trust, and when that breaks down, legal action may be necessary. 

Legal action may arise from a variety of legal disputes involving businesses and corporations. Oftentimes there are disputes over contracts such as: breach of contract, non-payment, or disagreements over the terms of the contract.

Before you can begin to resolve your dispute, it’s important to understand the legal rights of each party. In some instances, this may mean knowing how small business owners are treated under state law. In Illinois, state law says that when two or more people go into business together, they have a partnership. This is true even without any type of contract or written agreement. 

Get advice from a business lawyer Niles Illinois

If you’re in a partnership dispute, it’s important to get advice from a business lawyer. Business lawyers can help you with legal issues related to your business and partnership, including: contract drafting, buy-sell agreements, defining your corporate structure, employment issues, protecting privacy and intellectual property, partnership agreements and more. 

When an issue arises, it is bet to review the partnership agreement to have a clear understanding of who the decision makers are, what the operating procedures are, and the financial arrangements for profit, salaries, and debt. If you didn’t craft a formal agreement, but an informal agreement exists, a small business lawyer Niles Illinois can help you understand your legal rights. You need to understand the nature of your business relationship, how it evolved over time, and what caused problems to arise.

Your next step will depend on whether there has been any financial impact from your partner’s actions. If there has been no financial loss yet but you suspect that one may occur soon (for example if your partner has failed to pay invoices or rent due), then it’s worth assessing what legal rights you might have against them in order to protect yourself from further losses while they sort out their messes elsewhere. 

If one of your partners refuses to pay his share of expenses and debts because he feels unfairly treated by another partner, it may be possible for both sides in this dispute to come up with an agreement that allows him access to funds without having any impact on other parties involved in running their business together. Find out whether there are any cost savings available through renegotiating contracts or reducing overhead expenses.

Negotiation, mediation, arbitration, or litigation

If you and your business partner are having a business dispute, it may be necessary to negotiate a new partnership agreement. Through negotiation, you, your small business lawyer Niles Illinois, and your business partner(s) can determine how specific decisions will be made moving forward. We can work on a unique financial strategy that will protect the business and all those involved. 

Mediation may be an option. Mediation is a process where a neutral third party helps the two sides reach an agreement without going to court. Typically, mediation takes place in an informal yet moderated setting where the mediator speaks privately with each party or gets both parties together for a discussion. Both parties are able to have their say. After learning the positions of the parties and identifying their strengths and weaknesses, the mediator helps the parties come to a voluntary, uncoerced, resolution. This is a confidential process and can be a lot quicker than arbitration or litigation. 

Arbitration is another approach to settling partnership disagreements. In arbitration, one or more arbitrators make decisions about disputes based on evidence presented by both sides and then issue their decision in writing. During the arbitration process, parties may be asked to submit relevant documents into evidence to be considered by the arbitrator. After reviewing the case, the arbitrator will make a binding decision, even if one side does not want to cooperate.

If you cannot resolve the issue in a more amicable manner, litigation may be the only option for you. Sometimes it is necessary if your business partner(s) is unwilling to cooperate in a different process or is doing something illegal and you need to protect yourself and your business. There are some common issues that lead to a litigation process such as: abandonment, breach of fiduciary duty, expulsion of a partner, dissolution of a partnership, or negligence. 

Whatever approach you want to take, it is essential that you have an attorney that can protect your interests and your business’ interests. Contact The Law Office of David Hyde for an experience attorney that will help resolve your dispute in the most cost effective manner. 

Contact The Law Office of David Hyde for a free consultation