Partnership Disputes

When a partnership works, it’s because the people in it trust each other and talk to each other. When it stops working, it’s usually because one of those two things has broken down. A partnership dispute is rarely just commercial. It’s personal, it’s disruptive, and left alone it can put the whole business at risk. The sooner you get advice, the more options you have.

Why disputes happen

Most partnership disputes come down to the same handful of causes: partners who want different things from the business, a breakdown in communication, or money and roles that were never clearly agreed. Where there’s no written agreement, there’s often nothing to fall back on except the default legislation, the Partnership Act 1890 or the Limited Liability Partnerships Act 2000, and neither was designed to resolve a modern falling-out. That’s when a disagreement that could have been settled early turns into something expensive and drawn out.

How we can help

We advise partners on both sides of a dispute, whether you’re trying to resolve something before it escalates or you’re already deep in one. Wherever possible, we look for a practical way through that protects the business and the working relationship, rather than reaching straight for a fight. That might mean:

• Talking through your position and where you actually stand
• Working out what the partnership agreement says, if there is one, and what the law says if there isn’t
• Negotiating directly, or through mediation or another form of alternative dispute resolution
• Taking formal action where it’s the only sensible route left

We have both Business Services and Dispute Resolution lawyers, which means you’re not explaining your business to one firm and your dispute to another.

A partnership dispute is far easier to resolve while people are still willing to talk than after they’ve stopped.