People rarely enter into a business partnership with the expectation of ongoing conflict. Unfortunately, many business owners come to disagree with their partner(s) on fundamental issues governing the direction and operation of the business. Partnership disputes typically arise over the use of business resources, a failure to clearly delineate authority, or a failure to fairly distribute work-loads. To avoid this type of conflict, the best practice is to include a clear description of rights and duties, a mechanism for how partners resolve disputes, and the steps required for buy-out or dissolution. Hutchings Law Group can assist with the creation and interpretation of governing documents and develop a plan to protect and advance your rights. Depending on the situation and the wishes of the partners, this may include developing a strategy to help partners continue working together, or it may include crafting a way for the partners to separate.

In some cases, the dispute may arise because of a breach of fiduciary duty. These disputes typically arise from misappropriation of company funds or some other gross misconduct. In Nevada, there are certain fiduciary duties that partners, members, or shareholders may have to the company. Standing to bring this type of dispute in the courts may depend on the property interest and type of business entity involved. The nature and scope of these duties and the procedural formalities associated with enforcement can be quite nuanced. It is important to immediately consult with an attorney if you believe there has been a breach of fiduciary duty within your company.

If you have questions about your partnership, contact Hutchings Law Group today and allow us to explain your legal options.