Partnerships often start because two people with great business ideas believe they will work together well. Whether you started a business with a family member, friend, or colleague, getting along is key to smooth operations of the partnership. However, there is always the chance that a conflict could arise and a partner could want to take legal action against you.
Do You Have a Partnership Agreement?
The first place to turn to see how legal conflicts between partners should be resolved is the partnership agreement. Such agreements often address this matter and may limit the abilities of partners to file a lawsuit. Instead, a partner may be required to engage in arbitration or another alternative dispute-resolution method to resolve the problem.
Texas Partnership Law
If there is no partnership agreement or your agreement does not address dispute resolution, the situation will be governed by Texas partnership law. The law gives partners the right to file claims for the following:
- Breaching a partnership agreement
- Violating a duty to the partnership, such as the duty of loyalty or care, that resulted in harm to the partnership
- To enforce any rights under the partnership agreement or under the law
The law allows lawsuits to be filed seeking legal or equitable relief from you.
Defending against Legal Claims by Partners
If you are facing a lawsuit from a partner, it is critical that you seek representation from an attorney with experience in business litigation who can help you defend against such claims. Qualified legal representation can help significantly limit or avoid liability on your part.
However, you may be able to avoid such legal conflicts altogether if you seek help from a business lawyer to draft an effective and enforceable partnership agreement that can help resolve disputes in less costly ways than litigation.
Speak with a Houston Business Litigation Attorney Regarding Your Situation Today
The Weisblatt Law Firm has helped many partners and other business owners resolve conflicts through both negotiation and litigation. If you are facing a legal dispute regarding your business, call our business litigation lawyer for help at 713-666-1981.