Many people and entities form partnerships to do business together. No matter how amicable your business partnership is or how much you trust your business partner, a partnership dispute may arise.
Contrary to popular belief, you don’t even need to sign a partnership agreement to be subject to California’s laws governing business partnerships and disputes. You may be able to sue a business partner if you cannot resolve your partnership dispute without litigation.
Consider discussing your case with an experienced business law attorney at Wagner Zemming Christensen, LLP, in Riverside to find out how to sue your business partner in California.
Can you sue a business partner if there is a partnership agreement?
While you do not necessarily need a partnership agreement to resolve disputes, it is recommended to sign a comprehensive and enforceable agreement when becoming business partners.
Among many other things, a partnership agreement lays out the duties and rights of the partners and includes guidelines to help resolve disputes. Many partnership disputes can be resolved by simply reviewing the agreement and finding the solution among the provisions of the contract.
Many partnership agreements in California require the parties to engage in alternative dispute resolution (ADR) methods to resolve business partner disputes. In most cases, ADR methods include mediation and arbitration.
Thus, if your partnership agreement contains an arbitration clause, you may not be able to sue your business partner in court. Instead, you would be required to resolve the dispute through an arbitration process unless the arbitration provision is not legally binding. Consult with a business lawyer to determine whether the arbitration clause is enforceable and legally-binding in your dispute.
Can you sue a business partner without a partnership agreement?
Even if there is no partnership agreement in place or the contract is deemed invalid, you may still be able to resolve your dispute under the Revised Uniform Partnership Act (RUPA).
When there’s no partnership agreement in place, the RUPA regulates the rights and duties of the partners to help them resolve a legal dispute. Also, the RUPA allows partners to enforce their rights under the partnership agreement.
Under the RUPA, a partner can sue their partners for violating the terms of the partnership agreement or breaching their duties to the partnership. It can be difficult to navigate California’s partnership law when resolving business partner disputes. For this reason, it is advised to seek counsel from a Riverside business law attorney to help you sue your partner for violating the terms of the partnership agreement, written or oral.
Why you need a Riverside business law attorney
Suing a business partner when there is a dispute is never easy. Regardless of whether you need to resolve your business partner dispute through the traditional court process, mediation sessions, or arbitration process, it is vital to be represented by a Riverside business law attorney.
It may be possible to resolve a partnership dispute out of court. A lawyer will facilitate the negotiations between the parties to help them settle the dispute with minimum expenses.
A skilled attorney will also help you create or revise a partnership agreement in order to prevent business partner disputes. A partnership dispute is a key legal document that outlines the obligations and rights of the partners and defines the guidelines for settling disputes.
Contact our business law attorneys at Wagner Zemming Christensen, LLP, to help you draft a legally-binding partnership agreement that meets your goals. Speak with our lawyers to review your particular situation and determine whether you can sue your business partner if there is a dispute. Call at 951-686-4800 for a case review.