Partnership disputes - Community care

Duncan Lewis Litigation Solicitors – Partnership disputes

Partnership disputes can be especially complex to resolve because there is often a close working relationship or even personal relationship between the parties.

Disputes may be easier to resolve if there is a written agreement between partners – but working relationships between two or more parties who collaborate and share profits and losses are deemed partnerships even if no written agreement exists.

When personal relationships break down – sometimes after years of working together successfully – the fallout can be devastating, both personally and for the business operation.

Partnership disputes can escalate quickly – and if a partnership agreement has not been drafted to cover potential disputes, resolving the matter can require extensive negotiation and expert legal advice.

In partnerships where there is no written agreement and a working relationship has built up over time, seeking legal advice at an early stage can help prevent personal fallouts between partners and get the business back on track.

Partnerships where there is no written agreement are covered by the Partnership Act 1890, which defines a partnership and the liability of the partners, as well as the relationship between partners and liability of the partnership in the event of any wrongdoing.

There are many reasons why partners may suddenly find themselves in dispute with each other – and Duncan Lewis commercial litigation solicitors can advise at any stage of a partnership dispute, including disputes involving:

• Accountancy issues
• Dissolving a partnership
• Duty of partners not to compete with partnership
• Expulsion from a partnership
• Profit sharing
• Property bought with partnership money
• Retirement from a partnership
• Tax matters after dissolution
• Workload distribution disputes.

In the event a partner has been expelled from a partnership, it may be possible to claim damages for a breach of fiduciary obligations, or to claim for full payment of any fees due.

In the absence of a partnership agreement, any profits and losses and management control are automatically shared equally between the partners – meaning that an individual partner can be personally liable for any partnership debts.

Duncan Lewis can advise on court action and injunctions to prevent certain actions taking place within the partnership – as well as advising on dispute resolution and mediation services which may help to prevent costly litigation in a partnership dispute.

The Duncan Lewis commercial litigation team can also advise on the departure of a partner – including as a result of a partnership dispute – and any consequences, such as the automatic dissolution of the partnership and any legal and tax implications. 

For expert legal advice on commercial and company litigation and Partnership Disputes, call Duncan Lewis Commercial Litigation Solicitors on 0333 772 0409.