Partnership Disputes Solicitors in Birmingham
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Business disputes between partners, if not handled quickly and efficiently, can be extremely detrimental to a business’ future. From affecting employee morale and disrupting the normal workflow to hurting the business performance in the long run; a partnership dispute is a matter that has to be resolved as a matter of priority.
Here, at Witan Solicitors, we have a Midlands-based team of partnership dispute solicitors with over 100 years of combined industry experience who are ready to guide you through any business dispute and lead you to the best possible outcome.
Even with an adequately drafted partnership agreement, there are a number of unforeseen issues that may arise. After all, some agreements may only cover how to run the business and how to resolve disputes but not set out what actually happens in practice. What’s more, if there is no formal partnership agreement in place, this can make matters even more difficult. In the absence of an agreement, our experienced corporate partnership dispute solicitors will offer you commercially focused legal advice to help resolve any disagreements between you and your business partner.
What We Can Advise On
Our legal experts excel at minimising disruption to your business and can advise on a variety of matters, including:
- Discrimination Against Partners – Like any other employee, partners must not suffer from unlawful discrimination
- Dissolving Partnerships – If dissolving the partnership will lead to the best outcome, we can advise you through this transition
- Drafting and Updating Partnership Agreements – We will ensure that your agreement accounts for every potential issue that may arise
- Enforcing Restrictive Covenants – Partners have specific restrictions and therefore it is important to get specialist advice
- Partner Departures – Our corporate lawyers can advise on both voluntary and involuntary departures, including unfair dismissal and constructive unfair dismissal claims, as well as the right to retire
- The Employment Status of Partners – We can help you establish whether a partner is entitled to employee-specific rights, such as statutory maternity, paternity or adoption leave and protection from unfair dismissal
Qarrar Somji
Solicitor-Advocate
Qarrar qualified as a Solicitor Advocate in 2014 having previously had experience in a varying range of litigation roles.
Areas of Focus
Our range of expertise includes:
- Breaches of fiduciary duties
- Dismissal and retirement of partners
- Division and partition of partnership assets and property
- Dissolution and termination of partnerships
- Misuse of partnership assets
- Tax advice
Partnership Disputes
When a partnership deteriorates or completely breaks down it can cause distress and difficulties in relation to decision-making and the general day-to-day operation of the business. Our team of partnership dispute solicitors understand that these disputes need to be resolved quickly in order to minimise their impact on the running and success of the business. With offices in Birmingham, Northampton and London our solicitors have years of experience with successfully dealing with partnership disputes.
Our solicitors specialising in partnership disputes will aim to resolve the dispute or to reach a compromise using initial communication and negotiation which may lead to Alternative Dispute Resolution if necessary. If the dispute cannot be resolved and court intervention is required we will always put your best case forward.
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Common Causes of Partnership Disputes
In our 100+ years of combined experience dealing with partnership disputes, here at Witan Solicitors, we have successfully resolved numerous cases and we understand that there are many varying issues that can lead to the gradual breakdown of the relationship between partners. Here are some of the most common ones:
Misconduct
Misconduct cases can stem from many different reasons, most commonly in situations where a partner has:
- Exhibitedaggressive or disrespectful behaviour towards co-workers and/or clients.
- Engaged in a pattern of substance abuse and addiction.
- Stolen business leads to the profit of an individual business venture unrelated to your shared business.
- Been implicated in fraudulent activities, such as embezzling business funds and fabricating expenses.
- Any otherbreaches of your partnership agreement.
Failure To Do Their Share of Responsibility
When a partner fails to do their fair share to contribute to the business development, this often leads to tension and partnership disputes. Examples of such partnership dispute cases include:
- A partner fails to deliver on the majority of incoming business requests.
- A partner’s expertise no longer answers the business needs, due to changes in the industry.
- A partner demonstrates disengagement from the business by spending more time away from the business than in it, constantly arriving late or not coming in to work at all.
- A partner has been rendered incapable of performing their duties by a chronic health issue.
- A partner expresses their desire to change key contractual agreements, such as reducing working days, working remotely instead of in the office, etc.
General Partnership Disputes
Any business partnership can weaken and eventually fall apart over time, due to the inability of partners to see eye to eye on key points, such as:
- Business structure and chain of command
- Individual roles and responsibilities
- Budget allocation and best direction for financial investment
- Choice of supplier and/or clients to work with
- Long-term goals and vision for the future of the business
Most of these partnership dispute cases can be resolved without the need of a partnership dissolution through mediation and negotiation – something our commercial law teams in London, Birmingham and Northampton can assist you with.
Partnership Disputes Prevention
The main reason why partnership disputes escalate and face complications is having a weak partnership agreement or the lack of a partnership agreement altogether. This is why the best way to prevent partnership disputes is to get ahead of things and ensure that clear and accurate terms, goals and responsibilities are laid out at the start of any new business enterprise.
If you are planning to enter a business partnership, our commercial law team can create a reliable and effective partnership agreement to reduce the risk of partnership disputes in the future. Clean and accurate paperwork also makes the defence in cases of such disputes significantly easier to handle.
Our approach to resolving partnership disputes
Here at Witan Solicitors, we believe that every client should be treated with honesty and consideration. We take the time to understand your problems and your needs, in order to offer clear and objective advice on your partnership dispute. We take a few simple steps to partnership dispute resolution:
- Review your partnership agreement (if there is one).
- Discuss the issue with you to understand the root of the conflict.
- Mediate in negotiations to find an amicable solution.
- Defend your rights in court.
We understand that disputes can disrupt your business. That is why we always act quickly and provide accurate advice to help you reach a resolution as soon as possible. To avoid expensive or complex litigation, our corporate lawyers can help you resolve your dispute through mediation, negotiation and arbitration.
If court action is necessary, our partnership dispute solicitors will be by your side every step of the way. Our solicitors have honed their advocacy skills and have a strong record of success acting for a range of high-profile commercial clients.
Partnership Dissolution
Dissolution of a partnership occurs when the partnership relationship terminates. Dissolution does not inevitably lead to a winding up of the partnership.
Technical Dissolution
A “technical” dissolution arises when one partner leaves and/or another partner joins, but the business carries on under a new partnership arrangement. In effect, the old firm has dissolved and been replaced by a new firm of partners which will take on the assets and liabilities of the old firm and the business continues without a break. As far as an outsider is concerned, the partnership
General Dissolution
In contrast, a “general” dissolution usually refers to a dissolution leading up to a winding up of the business and assets. Once the winding-up is complete, the creditors and other liabilities satisfied and the remaining assets distributed among those partners so entitled, the partnership is at an end.
A general dissolution can be brought about by any of the following:
- Unanimous agreement (section 19, PA 1890)
- The exercise of an express power to dissolve in the partnership agreement (which could be by way of a majority agreement).
- Rescission of the partnership agreement for fraud or misrepresentation of one of the partners (section 41, PA 1890)
- The occurrence of an event specified in the PA 1890, for example:
- expiration of a fixed term or the end of the venture for which the partnership was established or if the partnership was entered into for an undefined time, by any partner giving notice (sections 26(1) and 32, PA 1890) (see Expiration of fixed term);
- by the bankruptcy or the death of a partner or a charge being created on a partner’s share in the partnership property for payment of his separate debts (section 33, PA 1890) (see Dissolution by death or bankruptcy and Dissolution by charging order); or
- by an event making it unlawful for the business of the firm to be carried on or for the members of the firm to carry it on in partnership (section 34, PA 1890) (see Dissolution by illegality).
- By the court on the application of a partner on one of the following five grounds:
- permanent incapacity of a partner;
- conduct by a partner calculated to prejudice the carrying on of the business;
- deliberate or persistent breach of the partnership agreement by a partner;
- the partnership business only being carried on at a loss; or that dissolution is “just and equitable”. (Section 35, PA 1890).
Why Choose Witan?
Our commercially minded corporate solicitors have extensive legal experience, making them the most trusted partnership dispute solicitors in the UK. Since 2014, we have been acting on behalf of businesses in a range of different sectors and industries and are recognised as industry experts in our field. We offer our clients all of the benefits below.
- 100+ years of combined legal experience in the team
- Jargon-free and accurate legal advice
- Strong commercial awareness
- Proven record of success representing high-profile commercial clients
- Partnership dispute solicitors in London, Birmingham, Northampton
Legal 500 Recognised Law Firm
If you are involved in a partnership dispute or have been threatened with legal action, it is important to get advice from experts you can trust. With decades of experience under our belts, we have been recognised by the Legal 500 as one of the top law firms in the UK. We excel at resolving a range of partnership disputes and will help you achieve the best possible outcome.
Contacting Our Partnership Disputes Solicitors
If you and your partner are in dispute or for whatever reason you are seeking a partnership dissolution, contact our expert solicitors and we will be happy to help. We have a Northampton, Birmingham and London based team which you can contact on info@witansolicitors.co.uk.
FAQ
What are the most common types of business disputes?
The most common types of business disputes include:
- Partnership disputes: Usually caused by a fall-out between business partners, who have a badly defined partnership agreement, or haven’t signed a partnership agreement, to begin with.
- Employment disputes: Those usually involve claims of unfair dismissal, contesting refused maternity leave and discrimination.
- Business-to-business dispute: Normally related to performance, defamation or financial disputes, this type of dispute can be triggered during any daily business-to-business interaction.
- Breach of contract disputes: When a legally binding contract has been breached, a lawsuit usually follows in seeking monetary compensation.
How do you handle partnership disputes?
Handling partnership disputes requires a non-judgmental approach and a willingness to listen to both sides, in order to find the optimal solution. With Witan Solicitors on your side, a partnership dispute will be resolved swiftly and professionally.
How do you dissolve a 50/50 partnership?
In order to dissolve an equal partnership, you need to ensure you follow the mechanism in your partnership agreement (if you have one) or speak to a specialist partnership solicitor so that they may be able to guide you through the statutory process.
How can you prevent a partnership dispute?
Employing the services of a professional partnership solicitor, such as Witan Solicitors, to write a clear and precise partnership agreement at the start of any business partnership is the best way to avoid future partnership disputes. It also makes a defence in court easier and cheaper should such disputes occur.
How to resolve business disputes between partners?
In order to settle a partnership dispute successfully, extensive planning and accurate documentation are needed. At first, an attempt to settle via negotiation will be made. In case of failure, litigation solicitors at Witan Solicitors can assist you in resolving the dispute in court.
It is always advised to consult with a partnership law specialist for a faster and more favourable resolution of your partnership dispute. With offices in London, Birmingham and Northampton, Witan Solicitors is a great choice of commercial, company and partnership law in the UK.