Practical Implications of a Dispute

Laying the foundations upon which to build your case.

There are a number of key steps you should consider taking when facing a partnership dispute.

First, you may need to secure the partnership assets. This may mean you need to double-check or change the business’s bank mandate. You should also carry out checks to ensure that partnership funds haven't been paid to an individual partner’s lawyers to fund the battle ahead.

It is key to secure access to any information or documentation which may prove vital to proving your case. It is not uncommon for the documents and files which hold this information to mysteriously 'go missing'. You may also need to consider regulating access to the businesses premises to secure the information you need.

Also, there might be confusion over precisely which (if any) partnership agreement governs the partnership. There may be arguments about previous events which have taken place in the past and it is often worth checking minutes of any partners’ meeting to see if they can provide any clarity.

For partners who feel aggrieved or excluded by the actions of their partners, one common mistake is they resign from the partnership prematurely. There are occasions where immediate resignation may be appropriate, however often this can be a serious tactical error. This is because:

• First there may be restrictions (especially in a professional services partnership) concerning when and how resignation can be given, and
• Second resignation as a partner means that a person gives up an element of control of the business and may be giving up access to the business’s records or information.

We would always strongly encourage partners to take appropriate advice before acting to avoid making a potentially costly mistake. Our team knows how to help partners and businesses take care of these practicalities, offering the specialist advice you need to protect your interests in a dispute.