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When Do You Need A Partnership Dispute Attorney In Newport Beach?

The Common Reasons To Hire A Business Law Attorney For Partnership Disputes In California

You don't enter a business partnership expecting things to go wrong. However, some disagreements can't be avoided. Like any relationship, business partnerships can change with time.

That said, how do you know you have a business dispute and not an innocuous disagreement? Let's look at the most common reasons why you'd need a Newport Beach Partnership Dispute Attorney.


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A Newport Beach Business Law Attorney can assist you in drafting a good partnership agreement that will help you prevent partnership conflicts down the road.

However, even if you have a good partnership agreement in place, you may need to settle various issues that arise in your partnership.

Here are the most common reasons you might require the services of a prescreened Newport Beach Partnership Dispute Attorney:

1. Breach Of Fiduciary Responsibility

Business partners owe each other fiduciary duties of loyalty and good faith that they must uphold, which include:

  • Not to be in direct competition with the partnership

  • Not break the law or engage in willful misconduct

  • Report profits

  • Report use of partnership property

  • Act on behalf of competitors

  • Not act with extreme negligence or recklessness

You may be able to obtain an injunction or recover compensation and even punitive damages if a partner breaches a fiduciary obligation.


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2. A Partner's Expulsion

A partnership can sometimes become unworkable due to one of the partners' behaviors. When this happens, you might need to kick out the difficult party to resolve the issue.

Your partnership agreement might call for expulsion for any of the following reasons:

  • Being charged with a crime

  • Being convicted of a crime

  • Making a bankruptcy filing

  • Poor professional conduct

  • Failure to fulfill the partnership agreement's duties

  • Breaking the terms of the partnership

For more details on how an expulsion is handled, contact a Newport Beach Partnership Dispute Attorney to help you out.

3. Disagreements On Business Decisions

As a business grows, disagreements among partners over how the company should be run are common. The following are some of the most common disputes:

  • How to make the most of the company's resources

  • Who is in charge of making decisions

  • Which business prospects should you pursue

  • What to do with the company's income

  • What the most important goals are

Most of these disagreements should be avoided if you have a well-drafted partnership agreement. However, you may not have a partnership agreement, or your contract may be incomplete, or you may differ on how to interpret your agreement.

If this is the case, you may need to hire a prescreened Newport Beach Partnership Dispute Attorney to assist you in resolving differences.

4. Breach Of Contract

Contracts and agreements may include the following clauses:

  • Non-disclosure contract

  • Non-compete clause

  • Contract of employment

  • A collaboration arrangement

A Newport Beach Business Lawyer can assist you in resolving a breach in the provisions of a partnership contract.


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5. Dissolution


Disagreements and friction can cause a partnership to break down. When this happens, you might need to dissolve a partnership.

In other cases, one of the partners simply decides to leave the company, becomes unable to participate, retires, or passes away. A partnership may also come to an end when a defined time expires or when the partnership's purpose is fulfilled.

Whatever the reason for dissolution, it might lead to a partnership dispute over problems such as:

  • The value of a terminated partner's company share

  • Whether a partner has broken the partnership agreement's terms

  • How you divide the assets of a partnership

  • How partnership debts will be paid

  • Buy out a withdrawing partner

Many concerns linked to partnership dissolution, like those relating to how the business is run, can be settled by consulting the provisions of your partnership agreement.


When terminating a partnership, regardless of your position, it is a good idea to counsel with a qualified prescreened Newport Beach Business Lawyer to ensure that your interests are safeguarded.

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