Partnership Disputes

One of the most common forms of trading is in partnership, where individuals agree to work together in business, contributing assets or resources and sharing profits.  A partnership can be formalised in a written agreement or can arise simply by people working in business together.

Certain rights, duties and responsibilities arise from trading in partnership – whether to the world at large or inter-partners.  If no express agreement exists their relationship is governed by the Partnership Act 1890.

Disputes can arise between partners and third parties as well as between partners.  More usually issues arise between partners, particular where one or more of the partners considers that another is not “pulling their weight” or taking a disproportionate share of the rewards.  This often results in the partnership being brought to an end (known as dissolution).

We commonly assist Partners in relation to claims arising out of the dissolution and the rights and remedies available to them.  Advice includes:

• What happens on dissolution
• Liability to fellow Partners and third parties
• Rights of action against fellow Partners arising out of their breach of duty of good faith, making a secret profit or failing to properly account
• Applications to appoint a Receiver
• Actions for an account in relation to the Partnership assets

Again, we temper any advice with commercial pragmatism – we would seek to resolve any such issues by negotiation or mediation.  However, where this fails to produce a satisfactory resolution, Tollers are able to represent their clients in claims through the Court.