PROBLEMS WE SOLVE

Business Partner gets sued by another partner for breach of contract.

You know that you and your business partner have been disagreeing on a lot of things lately, but you’ve passed the arguments off as a normal, if uncomfortable part, of running a company with someone else.

Then, one morning, a process server comes by the office and hands you a summons and complaint. You’re being sued by your business partner for breach of contract. After the shock wears off, you wonder what your next step should be.

A breach of contract occurs when a party fails to follow the contract terms or interferes with the other party’s ability to fulfill it. Unfinished work, late payments, and failure to meet standards are common examples that end up being resolved in court.

Litigation between business partners can seriously disrupt day-to-day operations and affect the growth and success of the company. If you’ve been accused of breach of contract, take the following steps right away.

Collect All Relevant Business Records

Gather all records related to the transaction. Depending on the type of contract you’ve been accused of breaching, you may want to accumulate the following:

Email conversations related to the contract and the supposed breach
Copies of the contract and its attachments
Financial statements

Be as thorough as possible, as your small business lawyer will want to go over them to determine whether a breach actually occurred. If not, it’s possible that your partner may be trying to force you out, which is another problem altogether.

Look at Your Partnership Agreement

A partnership agreement is not mandatory in Florida, but many business co-owners opt to create one anyway. These contracts describe each partner’s rights and responsibilities, as well as available damages in a lawsuit. Some contracts even specify whether disputes must be resolved via arbitration or litigation.

If your agreement was drafted by a small business attorney, it should be legally sound, but if you or your partner made any adjustments yourself, you’ll want to have them reviewed by a Florida partnership attorney to ensure that they haven’t made the contract unenforceable.

Contact an Experienced Partnership Dispute Lawyer

Due to the potential implications of a lawsuit between business partners, it is advisable to speak with an experienced, local attorney. Having an attorney on your side will enable you to make informed decisions about the legal options available to you in your particular case. Further, if the lawsuit proceeds to litigation, an attorney will be able to advocate on your behalf in court.

How Can the Florida Small Business Center Help?

Attorney Richard Sierra, Esq. has been handling business matters, including breach of contract claims and partnership disputes, for clients since 2004. He represents shareholders and partners in these disagreements, which may be resolved through arbitration, mediation, or litigation.

In the event that there is serious conflict between you and your business partner or you have been sued, you must act as soon as possible to protect your business and the equity you’ve built up on it. Call the Florida Small Business Center at 1-866-842-5202.