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Partnership Disputes

Talk to a Miami Partnership Dispute Attorney in Confidence

Disputes among business partners are common. As businesses grow and new opportunities arise, partners’ differing visions can lead to disagreements that extend beyond normal and healthy constructive dialogues and that devolve into disputes that disrupt the partnership’s day-to-day operations. When partners push their business relationship to the brink, salvaging the partnership—or targeting a favorable exit—requires the advice and representation of an experienced Miami partnership dispute attorney.

Partnership disputes can involve other issues as well. From the theft of partnership assets to the diversion of partnership opportunities, circumstances in which one partner acts in his or her own best interests rather than the best interests of the partnership also frequently lead to disputes. These circumstances also require skilled and strategic legal representation, and partners must work closely with their counsel to make the right decisions at the right times.

Legal Representation for Contentious and High-Risk Partnership Disputes

At Edelboim Lieberman, our attorneys rely on decades of relevant experience to help partners protect their investments. We represent partners and partnerships in all types of disputes in South Florida. Whether your goal is to salvage your partnership or exit the business and move on, we can execute an effective dispute resolution strategy focused on your specific goals and taking into account the unique circumstances at hand.

We handle all types of partnership disputes, including (but not limited to) those involving:

Disagreements Regarding Partnership Direction, Vision and Management

Most partnership disputes involve disagreements regarding the partnership’s direction, vision, or management. If partners cannot agree on how to run their business, the business can come to a standstill, and it can lose opportunities as the partners remain at odds. When these types of disputes arise, the partners must decide whether they are willing to work together to preserve the partnership or if it is time to go their separate ways.

Misappropriation of Partnership Assets

Misappropriation of partnership assets is another common trigger for partnership disputes. Whether a partner embezzles funds, steals partnership property, or otherwise defrauds the partnership, taking appropriate legal action can be essential for recovering the misappropriated assets and preventing recurrence in the future.

Diversion of Partnership Opportunities

Diversion of partnership opportunities is an issue that most frequently arises when one partner operates another business or seeks to establish an independent competing company. Also known as tortious interference, diversion of partnership opportunities is a form of fraud that entitles the partnership to clear remedies under Florida law.

Breach of Partners’ Fiduciary Duties

Under Florida law, partners owe various fiduciary duties to the partnership. These include a duty of care and a duty of loyalty. Not only do these duties prohibit partners from misappropriating partnership assets and interfering with partnership opportunities, but they give rise to claims in various other circumstances as well. These circumstances can range from making negligent and uninformed business decisions to improperly managing the partnership’s finances.

Breach of the Partnership Agreement

Partnership agreements typically impose a broad range of obligations on the partners. When one or more partners breach their obligations, the partners who are negatively impacted can pursue claims in their individual capacities, on behalf of the partnership or both. At Edelboim Lieberman, we have extensive experience handling these types of disputes, and a Miami partnership dispute attorney at one of our South Florida offices can help you decide how to move forward.

Partner Termination and Buy-Out Disputes

Disputes also frequently arise when one or more partners try to force another partner out or when partners run into issues during buy-outs. We have significant experience in both of these scenarios as well, and our attorneys can represent you regardless of which side of the dispute you are on. These disputes often involve issues of contractual interpretation and/or issues arising out of a lack of guiding contractual language.

Disputes Between General Partners and Limited Partners

In limited partnerships (LPs) and limited liability limited partnerships (LLLPs), general partners and limited partners will often have different perspectives and priorities. As a result, disputes between general partners and limited partners are also fairly common. We represent general partners, limited partners, and partnerships in these disputes, and we rely on our extensive experience to target favorable outcomes for our clients as cost-effectively as possible.

Options for Resolving Partnership Disputes

When it comes to resolving partnership disputes, there are several potential options. However, the options that are available in any particular case will depend heavily on the specific circumstances and issues involved. With this in mind, broadly speaking, the options for resolving partnership disputes include:

  • Buy-out, Sell-out or Freeze-out – A buy-out involves existing partners purchasing one partner’s interest in order to remove him or her from the partnership. A sell-out is similar but involves the purchase of the existing partner’s shares by a third party. With a freeze-out, majority partners force out an unwanted minority partner through a carefully structured merger transaction.
  • Partnership Dissolution – In some circumstances, the best option will simply be to dissolve the partnership. When this is the case, the partners will need to wind up the partnership’s business affairs and distribute the partnership’s assets appropriately.
  • Partnership Bankruptcy – When partnership disputes involve financial issues, bankruptcy may provide a favorable path forward. We maintain a significant commercial bankruptcy practice and can help you evaluate the benefits of filing for a Chapter 7 or Chapter 11 bankruptcy.
  • Mediation or Arbitration – Mediation and arbitration are forms of alternative dispute resolution (ADR) that can be used to avoid litigation. Depending on the circumstances involved, the goal may be to find a way for the partners to come to terms and continue building their business or to end the relationship.
  • Partnership Litigation – When necessary, partnership litigation serves as an effective tool for resolving complex and contentious disputes. We handle partnership litigation in state and federal courts across South Florida and beyond.

Schedule an Appointment with a Miami Partnership Dispute Attorney

If you would like to speak with a Miami partnership dispute attorney at Edelboim Lieberman, we encourage you to get in touch. Please call 305-768-9909 or send us a message online to schedule an appointment today. 

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