Expertise in Resolving Business Partner Disputes

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Disputes between business partners can have devastating financial and legal consequences. We help you to navigate this challenging time in a methodical and strategic manner.

Seeing eye-to-eye with your business partner on everything is a perhaps unrealistic expectation. Disagreements between business partners are not only common but should be viewed as an inevitable part of running a business with a co-owner.

When a disagreement threatens to spill over into a full blown dispute, there are a series of steps that ought to be taken to strategically navigate the situation. Failing to carefully navigate the dispute process can result in poor outcomes and regret. Conversely, a carefully developed and methodically executed strategy plan will likely result in a better outcome.

We assist with:

  • leaving a business partnership;
  • directors duties claims;
  • shareholder oppression / minority oppression claims;
  • forced buyouts;
  • litigation and Court matters; and
  • mediation and alternative dispute resolution.

Approach

Our usual approach is to:

  • provide you with a clear and transparent quote;
  • have an initial discussion about the situation, your desired outcome and other key factors which may impact our approach;
  • provide advice regarding the legal boundaries for the dispute (including exploring what we can potentially use as leverage, and what may be used against you);
  • collaborate with you to develop a strategy plan; and
  • methodically execute the plan and adapting where necessary.

Our advice will not focus narrowly on money. We consider the broader context – including factoring in the amount of time invested, energy consumed and distraction caused by the dispute. That being said, if obtaining a certain amount of money is important to you, we will relentlessly pursue that for you.


The Benefits of Working with a Business Partnership Lawyer

If you're looking for a lawyer for a business partnership, we'll discuss how to find the right one for your needs in this guide.

Firstly, prevention is better than cure. When establishing a partnership, choose a partnership lawyer to proof the partnership agreement and advise on any potential partnership disputes. Read More

Having a well-structured partnership agreement can protect the business under most eventualities. Partnership law can be complex; the right business partnership lawyer will make it simple.

The partnership model for business can be successful, particularly for Small and Medium Enterprises (SMEs). Sharing responsibilities and resources can drive business growth. However, the shared, collaborative nature of the model can lead to partnership disputes.

Partnership disputes can arise due to a number of reasons. These often include operational decisions, the hierarchy of authority and the investment of business resources.

Unless handled efficiently, these disputes can compromise the smooth running of a business. Negotiation and constructive discussion can prevent escalation to litigation.

Mediation and arbitration might also be advisable. Mediation means facilitated discussion for positive outcomes. Arbitration is similar to court action insofar as an arbitrator makes a final decision based on both perspectives.

If mediation and arbitration fail, legal action might be the last resort. An experienced business partnership lawyer can navigate you through business partnership disputes without damaging your business's long-term success.

Choosing the Best Business Partnership Dispute Lawyer

Not all partnership dispute lawyers are made equal. Here's how to choose the best one for your needs.

Do they specialise in partnership disputes?

Though it may sound obvious, choosing a specialist lawyer in conflicts, disputes and commercial litigation is necessary.

Do they have the relevant expertise AND a pragmatic attitude?

Use a business partnership dispute lawyer who can communicate clearly without overusing legal jargon.

A flexible approach to solutions

No business dispute is the same. Accordingly, a lawyer must have a grounded yet flexible approach to resolving disputes. Whether it's a phone call, a recommendation for a negotiation or a 'without prejudice' letter, the best lawyers will be able to decide on the best course of action.

Commercially focused advice

The lawyer should advise on how to resolve the conflict swiftly and satisfactorily. By resolving the dispute, you can then turn your attention to what's most important: growing your business.

No hidden fees or misleading pricing

The costs associated with legal action should be clearly expressed from Day One. At Velocity Legal, we provide our clients with an estimate of the cost after a 15-minute discovery call. Being transparent about pricing ensures clients can make fully informed decisions about how best to approach their business dispute.

Discover Velocity Legal's Partnership Dispute Lawyers

Whatever type of business partnership dispute you're experiencing, seeking legal expertise is a sensible course of action.

Velocity Legal's lawyers are well-versed and highly experienced in partnership law. We expertly distil complex situations into clear, rewarding outcomes.

Book a free 15-minute consultation if you're looking for legal support for a partnership dispute. Read Less

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When can mediation be used for a business dispute? Can I force someone to attend a mediation?

Some business disputes have mediation as a mandatory stage in the dispute resolution process. For example, mediation is often a mandatory step in disputes between owners of a business before the matter can proceed to a formal Court hearing.

Other business disputes do not have a mandatory mediation as a part of the dispute resolution process. For these disputes, mediation can nevertheless be requested even though it is not mandatory.

Please contact us if you need assistance working out whether you can compel someone else to attend a mediation.

What if the business dispute isn’t resolved at mediation?

The best next step after mediation will depend heavily on:

  • the strength of your legal position;
  • the nature of the business dispute;
  • your unique pressure points, including any urgency to resolve the dispute;
  • whether the mediation came close to resolving the business dispute or not; and
  • other factors relevant to the dispute.

If the business dispute is not resolved at mediation, we can assist you to strategically plan the next steps.

What is business dispute mediation?

Mediation is a form of alternative dispute resolution. It involves an expert mediator facilitating discussions between the parties who are involved in the business dispute. It usually costs less and is less formal than Court.

Can I force my business partner to exit? Can my business partner force me out?

The ability to force out a co-owner depends on the relevant legal landscape that governs the relationship.

The documents that regulate the relationship between the co-owners (e.g. the Shareholders Agreement and Company Constitution) are key aspects of the legal landscape. The terms of these documents can be vastly different from situation to situation. Some of these documents provide a clear forced exit process, others do not. Looking at these documents is usually a sensible first port of call to understand what is and what isn’t possible.

If the documents governing the relationship between the co-owners do not contain a forced exit process, a forced exit can potentially be achieved with the assistance of the Court (e.g. via a winding up or oppression proceedings).

Alternatively, you can seek to negotiate a mutually agreed exit on appropriate terms. Some of the exit methods include:

  • an agreed sale of shares for a fair price;
  • a company buy-back of shares; and
  • a sale of the entire business to a third party.

We recommend obtaining tailored advice so that you can understand your legal position and strategic options.

What is the difference between a Shareholders Agreement and a Unitholders Agreement?

The common theme with these contracts is that they regulate the relationship between co-owners. However, the underlying business structure is different. Owners of a company are shareholders (hence, an agreement between them is a Shareholders Agreement). Owners of a unit trust are unitholders (hence, an agreement between them is a Unitholders Agreement).

I am having a disagreement with my business partner. What do I do?

We usually recommend seeking advice as soon as a dispute arises. This is primarily because disputes can rapidly become more serious if they are not resolved promptly, and strategic errors made in the early stages are often difficult to reverse.

How do you charge?

Trust is one of our core values. We pride ourselves on not causing 'bill shock'. Our usual approach is to provide you with a clear and transparent fee quote to ensure that there are no surprises. You can then make an informed decision about whether you want to proceed or not.

Do I have to go to Court?

Achieving a mutually agreed outcome outside of Court is usually the first port of call. If that is not possible, seeking the assistance of the Court may be an available option.

When should I get a lawyer involved?

Time is usually of the essence with disputes. We have seen situations in the past where issues have been caused due to clients coming to us too late after the dispute originally arose. So, it is usually sensible to get in touch with a lawyer once the dispute arises.

What can I do to help mitigate the impact of a dispute if it does arise in future?

Enter into a co-ownership agreement (e.g. Shareholders Agreement, Unitholders Agreement or Partnership Agreement) as soon as possible after the inception of the business.

These agreements essentially create a rule book for the co-ownership relationship, and should contain an appropriate dispute resolution process.

Who commonly enters into a business co-ownership arrangement?

Common people who get involved in business co-ownership arrangements include friends, family members and third party investors.

What is business co-ownership?

Where a business has multiple owners. For example, if you own 50% of a business and someone else owns the other 50%, you two are in a business co-ownership relationship because you do not own the relevant company entirely yourself.

Team