what kind of lawyer to sue a business partner

by Miss Brenda Leannon II 8 min read

An experienced business dispute attorney can help you determine whether and how you can sue your business partner for abandonment.Feb 2, 2021

Full Answer

How do you sue a business?

Sue a Company: The Fast and Easy Way

  • Types of Companies You Can Sue. Any company can be held liable for federal, state, or local law violations. ...
  • Legal Grounds for Suing a Company. The table below outlines some of the most common legal grounds for suing a company. ...
  • Steps to Suing a Company. ...
  • Sue A Company With DoNotPay. ...
  • Big Brands That DoNotPay Has Helped Sue. ...

How to find a free lawyer?

Try these searches:

  • Pro Bono Resource Directory maintained by the American Bar Association. ...
  • Contact your local or state bar association (a professional organization dedicated to advancing the careers and education of their members). ...
  • Contact the organization or state agency that oversees lawyer licensing in your state. ...
  • Visit the local law school. ...
  • Call the local courthouse. ...

More items...

How to find a lawyer to sue another lawyer?

To win when you sue an attorney for malpractice, you need to show that:

  • The attorney was supposed to do something
  • He or she didn't do it (or did it wrong)
  • This resulted in a financial loss to you (losing the case or losing money)

What kind of lawyer do I need to sue a contractor?

Thus, the most common type of lawyer used to sue a contractor is a business law attorney. There may be differences in the type of lawyer you need depending on the type of contractor you enter into an agreement with.

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What can you do if your business partner is not working?

Address the Issue Many business conflicts can be resolved or managed through open communication. If you are unhappy with the contributions a partner has made, one option is to simply speak to him about your concerns. Explain what you have observed and how you are feeling, without being accusatory or hostile.

How do you deal with a controlling business partner?

Guidelines on How to Deal with a Controlling Business PartnerLimit your interactions Where Possible. ... Where Appropriate, do not Engage. ... Don't Be A Puppet. ... Always Speak Up. ... Review the Partnership Agreement – How to Deal with a Controlling Business Partner. ... Talk to Your Partner About the Agreement.More items...

How do you deal with a selfish business partner?

Tip. The best way to deal with a narcissistic business partner is to acknowledge their needs rather than engage in a power struggle. Give them the attention they crave and seek solutions that benefit both parties.

How do I get rid of my 50/50 business partner?

File a Dissolution Form. You'll have to file a dissolution of partnership form in the state your company is based in to end the partnership and make it public formally. Doing this makes it evident that you are no longer in the partnership or held liable for the costs of its debts.

How do I kick out my business partner?

When it comes to kicking out a business partner, you have three options: Follow the procedure set out in your operating agreement, negotiate a different deal altogether, or go to court. If you have an operating agreement, it doesn't matter whether your partner wants to be bought out or not.

Can my business partner kick me out?

In most cases, a partner can force out another partner only for violating the partnership agreement or state or federal laws. If you didn't violate the agreement or act illegally, you may nonetheless be forced out of the partnership if a court determines that the partnership should be dissolved.

How do I get rid of a toxic business partner?

In most cases, the non-performing partner can be ousted from the company through litigation, but this can be expensive. Another way to get rid of your partner is by negotiating a buyout. It is important to understand the rules associated with removing a business partner to protect your business interests.

How do you split a 50/50 partnership?

One popular type of partnership arrangement is the 50/50 split where profits and decision making is split equally. Partners entered into a 50/50 partnership agreement can dissolve the partnership at any time, and when a partner involved in a 50/50 agreement dies, the partnership automatically gets terminated.

How do you beat a narcissistic partner?

Here are the steps you should take:Don't argue about 'right' and 'wrong' ... Instead, try to empathise with their feelings. ... Use 'we' language. ... Don't expect an apology. ... Ask about a topic that interests them. ... Don't take the bait yourself. ... Remember to put yourself first.

How much do I ask for a buyout on a business partner?

Multiply the percentage of ownership by the appraised value of the business to determine the amount necessary to buy your partner's share. For example, if your partner owns 25 percent of a business that appraised for $1 million, the value of your partner's share is $250,000.

How do I break an LLC partnership?

These, according to FindLaw, are the five steps to take when dissolving your partnership:Review Your Partnership Agreement. ... Discuss the Decision to Dissolve With Your Partner(s). ... File a Dissolution Form. ... Notify Others. ... Settle and close out all accounts.

What happens when business partners split?

In a business partnership, you can split the profits any way you want, under one condition—all business partners must be in agreement about profit-sharing. You can choose to split the profits equally, or each partner can receive a different base salary and then the partners will split any remaining profits.

What Are the Grounds for Suing a Business Partner?

There are a number of circumstances that might justify a lawsuit against your business partner. For example: Your partner breaches a fiduciary duty...

Can I Sue My Business Partner for Negligence?

If your partner acts negligently, it could affect your business in a number of different ways. For example, your partner may harm the business by n...

Can I Sue My Business Partner for Abandonment?

If your partner abandoned the business, you will likely need to take action to expel the partner or dissolve the partnership. In most cases, the pr...

What happens when you file a lawsuit against a business partner?

When you file a lawsuit against a business partner, you are making a disagreement you are having even more adversarial. You and your partner are both likely to spend a lot of money, and the outcome that arises may not be best for either of you or for the business.

What to do if your business partner is acting in a way that is harmful to the company?

If your business partner is acting in manner that is harmful to the company or that goes against his obligations to the company, a lawsuit may be your best or only choice. If you do decide to sue your business partner, an experienced business litigation lawyer should be consulted for help.

What happens if your business partner breaches his fiduciary duty?

Your business partner breached his fiduciary duty. Your partner owes an obligation to you and the company and you can take action if that duty is breached. A fiduciary duty may be breached when your partners acts in his own best interests instead of doing what is right for the company you have created together.

What happens if a business partner violates a contract?

When any contract is breached, the party who was the victim of the breach can sue for damages.

What happens if a contract is breached?

When any contract is breached, the party who was the victim of the breach can sue for damages. This includes contracts entered into between co-partners in a business venture. Your business partner violates your intellectual property rights. If the company owns a patent, copyright, or trademark, your business partner cannot begin to personally use ...

Can you sue your business partner for fraud?

You can sue your business partner if: Your business partner engaged in fraud or theft. If your partner stole money or property from the company, you can file a claim to try to recover the items or funds. Theft or embezzlement is not only a civil matter, but is also a criminal matter.

Can a business partner use a patent without permission?

If the company owns a patent, copyright, or trademark, your business partner cannot begin to personally use this intellectual property without the permission of the company. These are just a few examples of situations where you may be able to bring a legal claim in civil court against someone whom you have partnered with.

How to resolve an issue with a business partner?

Sometimes the only way to resolve an issue with a business partner is through a lawsuit. If your business partner is engaging in conduct that is harmful to the company, or that violates their obligation to the company, a lawsuit may be the only option.

What happens if a business partner breaches an agreement?

If that’s the case, the partner may be violating one or more agreements entered into when the business was formed. If your business partner engages in negligent conduct, you may be able to sue them.

What to do when your business partner abandons the business?

No matter what the situation is, determining what options are available to you when your business partner has abandoned the business, acted negligently, or other violated their duties, it’s important to hire an attorney who can help you analyze the situation.

Do LLCs have operating agreements?

On the other hand, some Operating Agreements may alternatively state that members are not liable to each other, in which case no legal can be taken. In these cases, some states have laws that provide remedies that preempt the operating agreement under certain circumstances. Not all LLCs have an operating agreement.

Can you take legal action without a partnership agreement?

Even without an agreement, state laws may also allow legal action to be taken.

Can a business dispute be litigated without an agreement?

Even without an agreement, state laws may also allow legal action to be taken. Because it varies based on the kind of business, the nature of the agreement involved, and state laws, it’s important to hire an experienced business attorney to help litigate your dispute.

Can an LLC sue someone?

In those cases, members in an LLC can only sue one another if they can prove that they have been personally harmed apart from the other members or the business.

What happens if your business partner does not act as a reasonable person?

Your business partner did not act as a reasonable person would have under the same or similar circumstances; and. Your business suffered harm as a result of your business partner’s actions. If you can prove this, you may have a negligence claim. Your business partner owes a duty of care to you and to the partnership to make decisions in good faith. ...

What happens when a business partner leaves the partnership?

Abandonment occurs when one business partner leaves the partnership prior to the proper dissolution, or “winding up,” of the business. Depending on the terms of your partnership agreement, you may be able to take legal action against your business partner to enforce your rights. An experienced business dispute attorney can help you determine ...

What is a breach of a partnership agreement?

Breach of Partnership Agreement. Many partnerships will have a formal partnership agreement that describes the business duties and obligations of the partners in more detail. If you have a valid and enforceable partnership agreement, you and your partner are subject to the terms laid out in the agreement.

What is the responsibility of a partnership?

In general partnerships, each partner bears financial responsibility for the debts and liabilities of the entire partnership. There may come a time when you might want to sue your business partner for their part of the liability.

What is a general partnership?

The most common type of partnership is a general partnership. A general partnership is formed when two parties agree to operate a for-profit business. Typically, each partner will share equally in the profits and losses of the business. In general partnerships, each partner bears financial responsibility for the debts and liabilities ...

Can a business partner dispute be resolved without legal action?

Of course, some business partner disputes can be resolved without the need for further legal action. However, in some situations, the only option is pursuing litigation.

Is it good to start a business with one or more partners?

Starting a business with one or more business partners can be an exciting venture. When you begin, everything is new and exhilarating. And while you know that not everything will always go as planned, you at least know that you and your business partners have the same goals and objectives when it comes to the success of your business.

Why do business partners sue?

The underlying purpose of partnership lawsuits is to remedy damage to the business caused by things like breach of contract, negligence, abandonment, and more.

What happens when you start a business partnership?

However, unexpectedly, relationships may sour. Perhaps your partner undertook actions that undermined the company’s reputation and damaged business. In some situations, the only resolution to the conflict is suing your business partner.

What is a valid enforceable partnership agreement?

A valid, enforceable partnership agreement exists; Your business partner has breached a term or terms of the contract; and. You or your business has suffered damages resulting from the breach. If the above elements are present, a valid claim for breach of partnership agreement exists, and you may have grounds for suing your business partner.

What is a negligence claim?

Negligence. A negligence claim might exist against your business partner if their actions harmed the partnership. The following elements must exist for a negligence claim: Duty. Your business partner owes you and the partnership a duty of care. This duty of care requires business partners to make decisions in good faith.

Can you sue a business partner for abandonment?

You may wonder whether you can sue your business partner for abandonment. Abandonment occurs when the business partner leaves the partnership. In some situations, the business partner may continue to collect a paycheck despite not actively working. Abandonment constitutes grounds for suing a business partner as it may be considered a breach of fiduciary duty. All partners owe the other a duty to place the interests of the business above their own. If a business partner abandons the partnership to pursue opportunities for themselves, this may constitute a breach of fiduciary duty.

Can a partner sue a business partner for a breach of a partnership agreement?

If included in your partnership agreement, and your partner fixes the breach, you may avoid a lawsuit. If your partner refuses to fix the breach, you may have grounds to sue a business partner.

Can a partnership be sued for intellectual property?

Violation of Intellectual Property Rights. A violation of intellectual property rights belonging to the partnership may also give you grounds to sue your business partner. A partnership agreement may provide that all copyrights, patents, and trademarks are the partnership’s property. However, if your business partner has used this intellectual ...

Common Reasons to Sue Your Business Partner

When you enter into a business partnership, each of you implicitly owes the other, and the business itself, a certain level of conduct and loyalty. These obligations can arise whether or not there is a written agreement. Accordingly, below we discuss the various contractual and non-contractual grounds to sue your business partner.

Alternatives to a Lawsuit

Of course, you can sue your business partner? But, you should think things through carefully before you do. Even if you are absolutely right, a lawsuit can be a drain on your business. Before you decide to sue your business partner, consider a few alternatives.

A Skilled Guide Gets the Best Results

Our business legal matters lawyer at 303 Legal, P.C. has decades of experience in helping business partners resolve disputes, protect the business they built, and hold others accountable. If you are faced with a partner who is harming your business, give us a call to see how we can help you help your business.

What to do if your business partner abandons you?

If you have been abandoned by your business partner, a business law attorney in your area can help you determine whether you have legal standing to sue and if there are other options available to you to lessen the sting.

What happens if a partner uses intellectual property?

If a business partner used intellectual property in a way that breaches their fiduciary duties to the business, a lawsuit could be a way to recoup the losses.

What is breach of fiduciary duty?

A breach of fiduciary duty is taken a step further when theft or fraud is involved. If business partners steal from the business or engage in other fraudulent activities, it can be considered a crime in addition to being a civil breach of duty. If your business partner stole money or property from the business, ...

What happens if one partner calls it quits?

When one partner decides to call it quits before the other partner is ready, the remaining partner may wonder if they can sue for abandonment. Generally speaking, a partner is free to leave a partnership when they want to, and doing so will trigger a business dissolution. The dissolution will take place according to the terms ...

What is a partnership agreement?

Most business partnerships are governed by a written partnership agreement or, for limited liability companies (LLCs), an operating agreement. If a partner breaches the terms of the agreement, the non-breaching parties can sue for breach of contract. Other contractual terms that may allow remaining partners to sue a departing partner include: ...

Can you recover monetary damages from a breach of fiduciary duty?

It might be possible to recover both actual damages (the monetary losses that were the direct result of the breach) as well as punitive damages (damages awarded to punish the wrongdoer) if the breach of fiduciary duty was conducted in malice or fraud.

Can you take legal action against a former business partner?

Another breach of fiduciary duty, and a reason you may be able to take legal action against a former business partner, is if they infringed on the business's intellectual property rights.

What Is Partnership Fraud?

Partnership fraud is when a business partner knowingly misrepresents himself or herself or supplies inaccurate information for the sake of gaining some type of favorable outcome either for the business – such as adding extra numbers to figures to make it seem like profits or clients have increased – or for the partner – such as using for personal gain money that was meant for business purposes.

Drafting a Partnership Agreement for Your Business

If not specifically stated in a partnership agreement, all business partners may be liable for fraudulent activity committed by one partner. At the start of a business partnership, therefore, it is important to draft a partnership agreement that outlines how various situations should be handled in the business.

Suspecting Your Business Partner Committed Fraud

If you believe your business partner is committing fraud, you should take action immediately and gather evidence that confirms your suspicions. Failing to act quickly could put you and the company at risk, damaging company performance and reputation.

Discussing Your Situation with a Commercial Litigation Lawyer

Pursing a lawsuit against a business partner can be a complex and stressful process. At McCune Wright Arevalo, LLP, our commercial litigation attorneys in the Inland Empire are here to help you with the legal processes involved in this type of case.

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