Partnership & Shareholder Disputes

Common Business Disputes in Texas

Partnership and shareholder disputes might arise for several reasons, such as economic conflicts. Some common causes of these business disputes could be:

• Shareholder tensions
• Desire of one party to dissolve the partnership/business (“business divorce”)
• Breach of agreement or duty
• Conflicting business interests
• Failure to provide company information like financial documents

Breach of Partnership Agreements

Partnerships do not need to be physically in writing to be enforceable, but having it in writing will make the partnership dispute much more straightforward to handle. In serious cases when one partner has violated the terms of the agreement, it may be necessary to expel them from the partnership. However, note that expulsion can only occur after the partnership has been dissolved, after which a new partnership should be formed without the violating partner. Keep in mind that you must show good faith in the expulsion of the partner; it is unlawful to expel a partner without a good or fair reason, and this might even result in the expelled partner filing a lawsuit.

As with a breach of contract, damages involved in a breach of partnership agreement might include liquidated or compensatory damages to the harmed parties. In low-conflict cases, it may be favorable to pursue a settlement agreement instead of a lawsuit. A settlement might help to better preserve the business relationship, if appropriate.

Whatever partnership or shareholder dispute you are dealing with, the Omar Ochoa Law Firm can help you. We can examine the circumstances of your situation and provide guidance as to how you might proceed, such as pursuing a business divorce or dissolving a partnership agreement. In any case, you can expect us to assert your business rights and protect your entrepreneurial interests in the courtroom and negotiations room.

Settling a Business Divorce

One of the most complex situations to navigate is the business divorce when partners decide to split up. Important things to do to resolve your business divorce are assessing the value of your partnership and other assets in your business, as well as resolving outstanding contract terms with a range of partners, such as employees, contractors, and suppliers. You will also need to assess minority and majority shareholder rights and handle legal tax issues in the dissolution of the partnership. Note that corporations, partnerships, and LLCs are all structurally different, so they will be differently impacted by a business divorce.

An experienced attorney can help with every step of this process, and the Omar Ochoa Law Firm in particular has the professional knowledge you need to navigate these matters. In fact, our firm has taken cases are far as New York, Chicago, Los Angeles, San Francisco, and Washington D.C. – all from the starting point of our McAllen office.