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.

California business law

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.