No one wants to have to sue their business partner. As experienced business litigation attorneys, we understand that. Afterall, you probably formed the partnership because you genuinely like this person. They may even be your best-friend. Business disputes happen to the best of us. In fact, studies indicate that 70% of business partnerships are terminated or dissolved. However, you may have little to no choice in the matter. Especially if your business partner’s bad choices are adversely impacting your business. Not all partnership disputes warrant suing your business partner. In this blog post, we will be discussing what warrants a legal claim against your partner.
When Should You Sue your Business Partner?
Here are a few examples of when a lawsuit may be warranted:
- Your business partner most likely has certain fiduciary duties to you and the company. If your business partner is acting in their own interests, this can be detrimental to the company. In this case, a lawsuit may be the best option.
- When you set-up the partnership, you both most likely signed a partnership agreement. Even if your partner is a close friend, they are bound to the contract’s terms. If you are victim to a breach, you can sue for damages.
- If your partner steals or defrauds the company, you can file a claim to recover damages.
Alternatives to a Lawsuit
Litigation can be costly and time-consuming. If you sue your business partner, you may be unable to work together going forward. You should avoid a lawsuit whenever possible. However, there are times when a lawsuit is vital to protecting your business interests and you shouldn’t shy away from one in this case.
An experienced partnership dispute attorney can explore alternatives with you like mediation and other pre-suit resolution methods.
If you are involved in a lawsuit with a business partner, you might need to act fast to avoid further damage to your business. A business litigation lawyer can help protect your business interests and prevent further damage. Our Chicago attorneys have extensive experience with partnership disputes and lawsuit alternatives. Contact us today to discuss your claim at (312) 223-1699.