partnership dispute attorneys

One of the most disruptive things that can happen to a business is a disagreement between some or all of the business’s principals. The acrimony resulting from such disputes can cause great harm to a company and can affect its ability to operate and conduct its business. These types of disputes can arise due to a great variety of different factors.


A partner may be dissatisfied with the quality of another partner’s work, or there may be a disagreement regarding how the business should be run or in what direction to take it. In particular, partners who go into business without first creating a fully fleshed out, written agreement risk serious problems down the road.

Without a written agreement in place, issues may arise that were not discussed at the time of the formation of the business. Without a written agreement setting out how particular issues will be dealt with, the partners may be more likely to get into a dispute if they have a difference of opinion regarding how to resolve such matters.

Make sure you have a written agreement

One important step to avoiding partnership disputes is to ensure that a written agreement exists and is up to date, even if that means making one after the business has already started operating. As discussed above, partnership disputes can be much worse if there is no written agreement to rely on.

So, if it emerges after your business has been up and running for some time that no written agreement was ever made, it may make sense to create one after discussing and negotiating the key issues, even if your first instinct at that point may be to simply wait to resolve problems as they arise. Similarly, even if your business does have a written agreement, it may need to be reviewed from time to time to ensure that it is still up-to-date and continues to cover all relevant issues. As businesses change in nature and in scope, the agreement may need to be changed to reflect the new direction of the business.

Find and address potential partnership issues

It is important to address issues – or potential issues – that could lead to partnership disputes as soon as possible. It is often much more difficult and costly to try to deal with a dispute once it has arisen rather than working around the problems initially.

These could include:

  • Control of Partnership Agreement
  • Claims for Breach of Fiduciary Duty
  • Misappropriation of Funds
  • Partnership Dissolution
  • Divorce and Probate Disputes

Partnership disputes may be dealt with through alternative methods of dispute resolution such as negotiation, mediation, or arbitration, or via litigation. In either case, the cost would most likely be far greater than simply preventing the causes of the dispute in the first place.

Remember, if you have questions, doubts, or concerns regarding your business arrangements, it may be beneficial to consult with an Pennsylvania business attorney who specializes in such matters.