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Los Angeles Partnership Disputes Attorney

Los Angeles Partnership Disputes Attorney


Forming a new business is an exciting process. You have created a new idea that can be successful, and you found a partner that you trust to lead the business with you. Unfortunately, that happiness does not always last.

Even under ideal circumstances, it is possible for disputes to arise between business partners. There may be disagreements surrounding the day-to-day operations of the business. Other disputes may arise regarding how profits are shared or even employee pay. When these conflicts pop up, it is not always possible to settle them between partners, so a third party will need to be involved. It is most often in everyone’s best interest to avoid legal action. A Los Angeles business attorney from Blake & Ayaz can help settle this dispute.


A business partnership is when two or more individuals decide to start a business together. Each partner will contribute to the formation and maintenance of the business in some way. This may include investing money to get the business started, creating programs and software for the business, or maintaining sales and daily operations for the business. Each partner’s contributions should be determined prior to the business being officially formed. One of the best ways to establish these roles is with a partnership agreement.


When you are creating a business that is for a profit with at least two people, it is essential to have a partnership agreement created. This is a legally binding document that establishes what role and responsibilities each partner will have. It will lay out how much of the business each partner owns, what responsibility each partner will have in daily operations, and how profits will be shared. These documents are also intended to put a plan in place for any potential disputes or disruptions for the business.

Typically, a partnership agreement will take into account any major problems that may arise and put a plan in place for how they will be handled. Having a solid partnership agreement in place can be invaluable when disputes arise. Since it is a legal document, each partner is bound to follow the agreement. That can help settle disputes in many cases, but it is not always able to resolve them entirely. In those cases, other courses of action may be required, though that is most often the last possible option.


One course of action when facing a partnership dispute is to attempt mediation. During this process, a neutral third-party mediator is brought in in an attempt to resolve the problem at hand. These mediators are professionally trained and have absolutely no connection to any of the parties involved in the dispute.

The process of mediation allows every party involved to share the things they need and want in order for the dispute to be resolved. Once all parties have shared, the mediator will work with them to develop a set of potential compromises and solutions to potentially put the dispute to rest. This is a good option for many business partners because it allows the dispute to be settled without the need for court proceedings.


If mediation is not possible for any reason, then the partners may choose to pursue arbitration. This is a process very similar to mediation, but with a key difference: decision-making. At the conclusion of a mediation process, the involved parties will discuss the potential solutions presented and come to an agreement themselves. The mediator has no control over the final outcome. That is not true with arbitration.

If business partners choose to pursue arbitration, they will submit their dispute to the proper entity for a decision to be made. The involved parties will have no say in what the final decision is, and they must abide by it once the decision has been made. This is also preferable to litigation or legal action for a few reasons. First, it helps everyone involved avoid a lengthy legal dispute. It also tends to be much more cost-effective because no one is paying any legal or other fees.


The final course of action when a partnership dispute is involved is taking legal action. This means that some form of litigation is necessary in order to resolve the dispute. Depending on the circumstances surrounding the dispute, there are several claims that could be filed. Two of the most common are a breach of duty and a breach of contract. These claims, even if they are civil court claims, will often require full court proceedings. This will include discovering all evidence, presenting witnesses, and appearing before a judge. If litigation is necessary, the final verdict on the case will be decided by a judge and must be followed.

Most business partners will make an effort to avoid this step at all costs. Not only can the process be time-consuming and cost all involved parties a great deal, but it can also permanently damage the working relationship of the partners. In many cases, once a lawsuit or claim has been filed, the legal process takes a toll on the partners’ working relationship, and they are unable to continue their business. If you must pursue legal action, it is in your best interest to work with an experienced business attorney to ensure the best possible outcome.


Navigating a partnership dispute in Los Angeles, CA can be difficult, even under ideal circumstances. Facing conflict with someone that has been a major part of your life and business for years can be draining mentally and emotionally. Working with a Los Angeles business attorney can help make the process easier to manage.

They will have years of experience working with clients who have faced the same type of conflict you are facing. That gives them the knowledge to analyze and understand your circumstances, then make an informed decision about the best way to move forward. They can also offer an objective view of the situation. When your emotions are involved in a legal dispute, it can be harder to make clear, rational decisions about how to move forward. An experienced business attorney will be able to approach the conflict with a clear mind.

Partnership Dispute Attorneys FAQS

Q: Do You Have to Work with an Attorney During a Partnership Dispute?

A: You are not required to work with an attorney during a partnership dispute. If you have a strong partnership agreement and you are able to reach an agreement with your business partner, then there is no reason to work with an attorney. These cases can be difficult, however, so it is in your best interest to work with a Los Angeles business attorney if you are facing a partnership dispute. They will be able to guide you through the process and ensure the dispute is resolved quickly and effectively.

Q: What Is a Partnership Agreement?

A: A partnership agreement is a written agreement that business partners create prior to officially starting their business. This is a legally binding document that outlines how you will run your business, what will happen if disputes arise, and how your profits will be shared. A partnership agreement lays out what each partner will be responsible for in the daily operations of the business. The purpose of this document is to provide answers to as many common questions as possible so that major problems can be avoided in the future.

Q: Is Legal Action Required to Resolve a Partnership Dispute?

A: In many partnership disputes, legal action will not be necessary at all. If a strong partnership agreement has been laid out ahead of time, then they will be able to abide by the terms set forth in that agreement. If they are unable to resolve the issues for some reason, then partners may seek out mediation or arbitration to avoid any legal processes. That will allow a neutral party to step in and attempt to solve the dispute. If that is unsuccessful, then legal action may be necessary. In most cases, legal action is avoided unless absolutely necessary.

Q: Can You Sue a Business Partner During a Partnership Dispute?

A: While many business partners choose to avoid legal action during a partnership dispute, there may come a time when you need to sue a business partner in order to resolve a dispute. There are several reasons that a legal claim may be made during a partnership dispute. Some of the most common reasons that a partner may be sued are a breach of contract and a breach of duty. This is often a last resort because it is difficult to recover a working relationship following a lawsuit.

Partnership disputes can be messy and stressful. You want to ensure that your business is protected as much as possible, but you also want a fair and just conclusion to the conflict. An experienced business attorney from the team at Blake & Ayaz can guide you through the process to achieve the most effective solution. With over 60 years of combined experience, contact the trustworthy team at Blake & Ayaz to walk with you through a partnership dispute.


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