Though partnerships can be a very effective way of running a business, particularly as a limited liability partnership, disputes and disagreements sometimes arise within them. Once they have begun, they immediately affect the smooth running of the business and they can become bitter. Often, swift and decisive action is necessary, for otherwise the damage to the business may be significant or the condition may become terminal.
Sometimes, there is a lack of clarity between the partners, or there are different views within the partnership, as to what the partners will be contributing to the partnership and what they will be taking out of it.
Many partnerships start with written partnership agreements or deeds. In other cases, the participants have to fall back on the automatic provisions of the Partnership Act 1890.
We represent partnerships where the majority of the partners are trying to deal with a difficult partner.
We also deal with individual partners who believe that they are being treated unfairly by the others.
In the end, the solution to the disagreement may be for the minority to make a managed exit. In other cases, it may be necessary for the partnership to be wound up or dissolved.
Where a former partner has begun to complete with the partnership, the continuing partners may need to take action against him, seeking either an injunction or compensation, perhaps in the form of an account of any profits he has made unlawfully.
We have wide experience in dealing with partners and partnerships, both in the trading arena and also involving agricultural and family partnerships. We approach each dispute with confidence that we can achieve a successful outcome.