Business partnerships can be an excellent way to start and run a successful business. However, sometimes disputes can arise between partners that can threaten the future of the business. These disputes can occur due to disagreements over management, compensation, or even differences in business goals
At Bridgford, Gleason & Artinian, our California Business Partnership Disputes Lawyers can help you navigate the complex legal landscape and protect your interests. Whether you are dealing with issues related to breach of contract, fiduciary duties, or ownership disputes, we can help you pursue a favorable resolution. Contact us today to discuss your partnership dispute and learn how we can assist you.
What are California Business Partnership Disputes?
California business partnership disputes occur when disagreements arise between two or more partners who own and operate a business. These disputes can range from minor issues to major conflicts that threaten the very existence of the business. Business partnership disputes can arise from a variety of causes, such as disagreements over management or operational decisions, breach of fiduciary duties, breach of partnership agreements, disputes over profit distribution, and even personal conflicts between partners.
Examples of California Business Partnership Disputes
There are several types of business partnership disputes that can arise in California. One common type is a disagreement over finances, such as how profits are distributed, how expenses are allocated, or how much capital each partner should contribute to the business. Another type of dispute is a disagreement over management, where partners may have different opinions about how the business should be run or who should be making certain decisions. Disputes can also arise over breach of fiduciary duty, where one partner may accuse another of acting against the best interests of the business or taking actions that are harmful to the partnership. Other types of disputes can include disagreements over intellectual property, partnership dissolution, or the admission or removal of a partner.
Laws on Business Partnership Disputes in California
Business partnership disputes in California are governed by both state and federal laws. The California Revised Uniform Partnership Act (RUPA) provides rules for partnerships, including their formation, operation, and dissolution. In addition, the Uniform Commercial Code (UCC) contains provisions that regulate sales and other commercial transactions, including partnership agreements. Federal laws such as the Securities Act and the Internal Revenue Code also apply to certain types of partnerships.
Dissolution of Business Partnerships in California
In California, business partnerships can be dissolved voluntarily or involuntarily. Voluntary dissolution occurs when partners decide to terminate the partnership and dissolve its business affairs. On the other hand, involuntary dissolution is initiated through legal proceedings, such as a court order or an administrative action. In cases of involuntary dissolution, a court-appointed receiver may be required to manage the partnership’s affairs until the dissolution is complete. The rules and procedures for the dissolution of business partnerships in California are governed by state law and the partnership agreement if one exists.
Partnership Agreements in California
A partnership agreement is a legal document that outlines the rights, obligations, and responsibilities of the partners in a business. In California, a partnership agreement can be written or verbal, but it is highly recommended that it be in writing. A written agreement allows for clear communication and can help prevent misunderstandings between partners. A partnership agreement in California should include details such as the name and purpose of the partnership, how profits and losses will be shared, how decisions will be made, how the partnership can be dissolved, and what happens in the event of a partner’s death or withdrawal from the partnership. It is also important to include provisions for dispute resolution in the partnership agreement, in case any conflicts arise between partners.
Contact our California Partnership Disputes Lawyer Today
Are you currently facing a partnership dispute in California? Disagreements between partners can quickly escalate and threaten the future of a business. If you’re considering forming a business partnership in California, it’s crucial to have a strong partnership agreement in place to protect your interests and prevent disputes from arising. At Bridgford, Gleason & Artinian, we have extensive experience in reviewing and litigating partnership agreements. Our California partnership disputes lawyers can help you navigate contentious business partnership disputes. Contact us today to schedule a free consultation.