Going into business with a partner, especially a friend or family member, can be exciting and rewarding. But when relationships break down, the fallout can be deeply personal, emotionally draining, and financially damaging. At Yankwitt LLP, we have helped many clients navigate these high-stakes “business divorces,” which can jeopardize not just relationships, but the entire company.
Why Partnership Disputes Happen
Serious disputes often arise in the context of a 50-50 ownership structure. While equal ownership and control may seem fair in the beginning, disagreements can lead to a deadlock because neither partner has the authority to break a tie. The result is one partner can hold the business hostage, stalling key decisions and disrupting operations.
While equal partnerships can succeed, they require careful planning and clearly defined exit strategies. Even then, unresolvable conflict can still arise, as emotions run high and the future of an entire business is at stake.
The Importance of a Partnership Agreement
A written partnership agreement is critical, regardless of how well you and your partner are getting along. A well-drafted agreement outlines financial contributions, roles, decision-making authority, and what happens if a partner wants out. It will also spell out the process for resolving potential disputes – in mediation, private arbitration or litigation before the courts.
While a partnership agreement will not prevent all disputes, it gives you a roadmap for resolution—and a stronger legal position if your partner breaks the rules.
Resolving a Business Dispute
When a dispute first arises, you should consult an experienced commercial litigation attorney. Do not wait for the dispute to escalate to a lawsuit. At Yankwitt LLP, we guide clients through each stage of dispute resolution:
Reviewing Your Agreement to assess rights, obligations, and breach points.
Sending a Demand Letter to formally present claims and demand action.
Negotiating on Your Behalf to keep discussions focused and strategic.
Pursuing Mediation or Arbitration, if available, for faster, private resolution.
Litigating When Necessary with a custom strategy designed to meet your goals.
When it comes time to commence or defend against a litigation, we represent clients in a broad range of partnership-related claims, including breach of contract, breach of fiduciary duty, fraud, access to books and records, accountings, intellectual property misuse, and more. Remedies may include monetary damages, buyouts, forced dissolution, or full access to company records.
Why Choose Yankwitt LLP
As Westchester County’s go-to firm for high-stakes business litigation, Yankwitt LLP is known for delivering results in complex partnership disputes. Our attorneys are skilled negotiators and aggressive trial lawyers who know when to settle and when to take your case to court.
Whether you are seeking to resolve a conflict, exit a partnership, or protect your business, our team will develop a strategy that aligns with your personal and financial goals.
To speak with an experienced commercial litigator about your partnership dispute, contact Yankwitt LLP at 914-686-1500. We can help you protect the business that you have built.
L-R: Waleska Suero Garcia, Michael H. Reed, Jason M. Swergold,
Ross E. Morrison, Benjamin R. Allee, Russell M. Yankwitt, Philip J. Tullo,
Alicia Tallbe, Scott L. Wenzel, Dina L. Hamerman, Cassandra M. Vogel,
George C. Godfrey III, Jonathan Ohring.
