Disputes generally arise within what is known as the “traditional partnership” or a limited liability partnership (LLP).
An increasing number of partnerships are now starting life as or converting to the LLP status.
In our experience, disputes often arise from the following circumstances:
- The level of work and/or commitment from a particular partner
- Disagreement over the future direction of the business
- The level of remuneration of a particular partner
- A partner diverting or taking business that belongs to the partnership to a separate business owned by them
- The expulsion of a partner
- Enforcement of restrictive covenants in respect of an outgoing partner
In an ideal world, the partnership will have a comprehensive written agreement which deals with in the rights and obligations of the parties. Whilst this can help to narrow the issues, it does not mean that litigation will definitely be avoided. Any form of litigation can have a detrimental impact on a business and can be extremely destructive. This is even more so when dealing with partnership disputes, as often the personal emotions of the parties become involved. Tollers has experience of protecting individual partners rights and those of the partnership and will do all that it can in order to try and bring the dispute to as swift a conclusion as possible to avoid what can be expensive and time consuming litigation in the instance that formal legal proceedings by way of Court action have to be pursued.
Mediation or Litigation
Round table meetings and mediations are now a means to resolve such disputes without the need to resort to legal proceedings. That being said, where necessary Tollers can act quickly to obtain an injunction from the Court if one partner is determined to damage the business or is removing partnership assets. Tollers’ ability to quickly understand the issues and impact that the dispute is having on the business enable it to suggest a course of action which is most appropriate.
Talk to Tollers
Should you require any further information or assistance on any partnership dispute, then please do not hesitate to contact us on 01604 258558 or by completing the form below.