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Navigating the choppy waters of business partnership disputes can be daunting. Whether you’re in Pennsylvania or New Jersey, understanding your rights and options is crucial in these challenging situations. In this article, we’ll explore common issues and queries related to partnership disputes, offering clear, actionable advice and explaining why it is especially important to make sure you have an experienced partnership dispute lawyer looking out for your

Understanding Partnership Disputes
Business partnerships, like any relationship, can face conflicts. These disputes can arise from misunderstandings, differing visions, or financial issues. It’s essential to address these disputes promptly and effectively to avoid detrimental impacts on your business.


Commonly Asked Questions in Partnership Disputes

  1. What If I Am Frozen Out of the Company by Another Partner?
    • Being ‘frozen out’ is a serious concern. It typically refers to a situation where one partner is excluded from management or decision-making. In both Pennsylvania and New Jersey, partners have legal rights, and remedies may include seeking a court order for fair treatment or even damages.
  2. What Happens If There Is No Operating Agreement or Governing Documentation?
    • Without an operating agreement, state laws, particularly default rules, govern the partnership. Most states such as Pennsylvania and New Jersey, have a Uniform Partnership Act and Limited Liability Company Act which provides the default rules, but these may not reflect your specific situation. Courts in evaluating a dispute almost always begin by looking towards the partnership, LLC’s, or corporation governing documentation. For example in Pennsylvania, you can access the state’s Limited Liability Act here. This is precisely why it is always advisable to have a comprehensive operating agreement in place and to have a business dispute lawyer review it as soon as possible.
  3. How Can I Ensure Inclusion in Decision-Making as a Partner?
    • Ensuring Your Voice Is Heard: Clear communication and documented agreements are key. Regular meetings and a structured decision-making process can help. If exclusion persists, legal intervention and Court intervention might be necessary to enforce your rights.
  4. What Is a Derivative Lawsuit?
    • Understanding Derivative Lawsuits: In a derivative lawsuit, a partner sues another party on behalf of the partnership. This is common in cases where a partner’s actions have harmed the business. These lawsuits can be complex, requiring thorough legal understanding.
  5. Why do I need a Partnership Dispute Lawyer?
    • Ultimately, it is especially important to consult with a partnership dispute lawyer early in the process to advise you of your interests. This is likely NOT the attorney your company used to draft your operating agreement or assist you with the formation of your company.  Rather, this is a company that is specifically looking out for your rights under the law and the existing operating agreement or partnership agreements you have in place.  An experienced partnership dispute lawyer will help you strategize to ensure your goals are met in a cost-effective manner and assist you in evaluating whether Court intervention is necessary given your circumstances.


Steps to Resolve Partnership Disputes

  • Open Communication: Often, disputes arise from misunderstandings that can be resolved through direct communication.
  • Mediation: A neutral third party can facilitate a resolution that’s agreeable to all partners.
  • Legal Consultation: If disputes escalate or involve legal complexities, consulting with an attorney experienced in partnership law in PA and NJ is crucial.
  • Litigation: As a last resort, taking legal action may be necessary to protect your rights and interests.


Why Choose Our Firm?

At Freundlich & Littman, LLC, we understand the intricacies of business partnership disputes in Pennsylvania and New Jersey. Our business dispute lawyers have ample litigation and dispute resolution experience. Our approach combines legal expertise with a deep understanding of business dynamics to offer tailored solutions. Whether it’s negotiating clauses in an operating agreement, engaging in a mediation between partners in a dispute, or aggressive representation in court, we are here to support and guide you.


Final Thoughts
Partnership disputes can be challenging, but with the right approach and legal support, they can be managed effectively. If you’re facing such a dispute, don’t hesitate to reach out to Freundlich & Littman, LLC for expert advice and representation today.

Have more questions or need personalized advice? Contact us today at 215-545-8500 to schedule a consultation. Let’s navigate your partnership dispute together.

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