If you are sued by your business partner because of alleged improper action on your part, what remedy will he or she seek?
Many interested parties assume that, when your business partner sues, it is a case for damages like lost profits, restoration of benefits, and the unauthorized or withdrawal of business funds. I have also been asked to handle cases where a partner took action well beyond what was agreed to by the partnership. But a lawsuit seeking economic damages may not be the best available option.
In most cases, when a business partner (often a majority owner) takes excess funds from the company, the right to seek reimbursement of the funds improperly taken belongs to the company, meaning the company needs to be the plaintiff.
However, a better remedy may be available. A co-owner/partner instead may allege a breach of contract and seek to compel the right to buy out his business partner or to be bought out. It is up to the judge to determine who will be the buyer and the seller. Therefore, a business owner/partner must understand that he may file the suit looking to buy out his co-equal partner, only to have the judge rule that he must sell, instead.
An attorney experienced in such lawsuits can often help a client assess the most likely outcome in such a case, and how to focus the case to help achieve the desired result.
Contact me personally today to discuss your partnership lawsuit or business dispute matter. I am easy to talk to, very approachable, and can offer you practical, legal ways to handle your concerns. You can reach me toll-free at (855) 376-5291 or e-mail me at fniemann@hnlawfirm.com/.