Partnership and Shareholder Disputes
Disputes about how to run a business are inevitable, and are part of any successful company. However, when conflicts become unresolvable or begin harming business operations, it may be time to bring in outside help to resolve the problem. Whether the clinfict is between partners, shareholders, or other relevant parties, the partnership and shareholder dispute attorneys at Simms Showers LLP are prepared to step in. While litigation is often avoidable in many of these situations, litigation often proves a successful recourse when communication and cooperation between parties has been irrevocably damaged.
Common Partnership and Shareholder Disputes
From the formation of a business to its dissolution, conflicts are bound to arise between partners or shareholders. These conflicts may form during good or bad times, during periods of change, at points of stagnation, or during times of comfortable growth. A few examples of when disputes that may require litigation may occur include the following situations:
Breach of Contract—Failing to uphold a promise, or interfering with another’s performance is a breach of contract, according to Cornell Law.
- Buy-sell agreements
- Duty of management
- Allocation of profits
- Issuing dividend and compensation
- New partners or shareholders admissions
- Ownership interests
- Tortious Interference—Wrongfully interfering in another’s business relationships or contractual relationships is considered tortious interference, according to Cornell Law.
- Client poaching
- Undue influence, threat, and coercion regarding contracts
- Civil conspiracy
- Violation of partnership or shareholder agreements
- Violation of non-compete agreements
- Violation of confidentiality agreements
- Breach of Fiduciary Duties—Fiduciaries have a legal obligation to put the best interest of their beneficiaries first. Failure to do so is a breach of fiduciary duty.
- Good faith and fair dealing
- Self dealing
- Full disclosure
- Fraud—Fraud, is the intentional falsification of facts, or the intentional omission of facts, in order to deceive another party.
- Misrepresentation of facts
- Misappropriation of trade secrets
- Fraudulent transfer
- Patent infringement
- Trademark infringement
Litigation and Emergency Relief
If settlement negotiations fail, shareholders and partners may move toward litigation. Litigation is an effective tool for resolving conflicts and enabling the victim to receive compensation. However, in some cases litigation may prove to be too slow. If the situation demands a swift resolution, it may be necessary to file an emergency motion. For example, it may be in one party’s best interest to file a preventative motion before the other party takes action. We can assist clients with preliminary injunctions or restraining orders, when necessary, in order to provide emergency relief.
Contact Our Partnership and Shareholder Attorneys Today
Years of hard work and cooperation can go down the drain in the flash of a second. If a serious conflict arises between shareholders or partners, such as an accusation of fraud or breach of contract, it may be necessary to bring in outside help to resolve the matter. The partnership and shareholder litigators at Simms Showers LLP are prepared to review your case and come up with a strategy that meets your goals so that you can move on from this troubling matter as quickly and easily as possible. Contact us today to schedule a free consultation.