3 Things To Do Before Suing Your Partner

On Behalf of | Jan 7, 2024 | Business Disputes |

A healthy business partnership can be a very valuable relationship. Both partners may derive emotional and social support from having a partner. The contributions each partner offers can round out what the other brings to the table. If one partner experiences some kind of personal setback, the other may be able to step up and pick up the slack. Unfortunately, business partnerships sometimes involve two people with mismatched values. One partner might misrepresent their abilities or intentions to the other.

The conflict between the two may slowly continue to escalate until one partner begins to believe that their only real option is to take the other to court. A lawsuit between business partners can have major implications for the organization that they run together. Before someone files a lawsuit against their business partner, they may want to complete the three steps outlined below.

Review the partnership agreement

Business Partnerships usually start with in-depth contract negotiations. Sometimes, the terms of that contract could include a requirement to attend mediation before litigating. Other times, there may already be very clear expectations for a buyout where one partner purchases the other’s interest in the company. Going over a partnership agreement thoroughly may help people avoid mistakes and oversights that could complicate their legal matters.

Gather documentation

Someone facing a legal conflict with a business partner might try to alter or destroy company records. They might cease engaging in conduct that triggered the conflict. Therefore, partners preparing to take legal action typically need to gather evidence before they announce their intent to take the issue to civil court. Otherwise, they may have a harder time gaining access to records and proving that misconduct and other issues have plagued their working relationship with their partner.

Propose a business/process improvement plan

When there is a problem employee at a company, management may identify their shortcomings and offer training or other forms of support to help them improve their work performance. Something similar can occur when there are issues between business partners. The person contemplating a lawsuit could propose ways that the partners can improve their functional relationship and strengthen the company. If the other partner is receptive and cooperates, it may be possible to avoid litigation while simultaneously addressing the issues that have made someone consider going to court.

Those contemplating taking legal action against a business partner often need assistance while navigating these complicated and potentially emotional matters. Seeking professional guidance for complex legal issues can take some of the risk out of navigating a partnership dispute.