Atlanta Partnership Disputes Attorney
In Georgia, partnerships are a common business entity—easy to form and inexpensive to run. But, as with all businesses, disagreements can break out between partners. Unfortunately, in most partnerships, each partner has the power to bind the entity to certain contracts or make other decisions, so disputes must be handled in a sensitive manner.
At Stacey Evans Law, we have deep experience with partnership disputes of all kinds. We will meet with you to gather your side of events and then seek immediate legal means to protect the partnership during this crisis. Contact us today.
We Can Help Disputes over Management and Control
Running a business involves innumerable decisions, both big and small. As a partnership grows, you might find you need to hire employees, borrow money, and sign contracts. Many questions break out over who has the power to make these decisions.
When partnerships are formed in a deliberate manner, there should be a founding written agreement signed by all partners which allocates power to make these decisions. For example, a partnership agreement might identify a managing partner who can hire and fire employees, sign vendor contracts, and engage in marketing. More significant decisions—such as borrowing money or bringing on an additional partner—would then require a vote of all partners.
Unfortunately, many partnerships are formed without a partnership agreement in place. Under Georgia law, each partner has an equal say unless specified in a written agreement, and a divided partnership can bring a business to a standstill. Even worse, one partner might unilaterally make a decision which harms the entity. A dispute is decided according to the Georgia Uniform Partnership Act.
Our Lawyers Assist with Fiduciary Duty Disputes
Partners owe each other certain fiduciary duties imposed by law. These include the duties of loyalty and honesty. For example, a partner’s duty of loyalty would prohibit him from making contracts which benefit only him personally. He must also not use partnership assets in a way that benefits only him. The purpose of these duties is to ensure that partners act only in the best interest of all partners.
Many disputes arise between partners when they suspect each other of self-dealing, dishonesty, or fraud. Sometimes a lawsuit is necessary to compensate partners for this breach in the form of money damages or equitable relief, such as an injunction.
We Can Respond to Squeeze-Outs and Freeze-Outs
Power struggles in partnerships often surface when a partner tries to force another partner out of the business, often by withholding key information and failing to communicate. A partner might represent himself to potential clients as the managing or sole partner, when that is not the case. These struggles are often called “squeeze-outs” or “freeze-outs” and are violations of Georgia’s partnership law.
We can discuss with a client what remedy to seek. When working relations deteriorate to this point, many partners no longer want to be involved in the partnership but instead seek financial compensation.
Give Us a Call
Our Atlanta partnership disputes attorneys are standing by to assist in any way we can. You worked hard to form your partnership. Don’t let a dispute between partners threaten everything you have achieved.
