Partnership Disputes Lawyer in Toronto, Ontario

When people form their business as a partnership, they expect their business relationship with partners to remain solid even through hard times. After all, even the word “partner” means to “pair up.” Unfortunately, there may come a time when partners disagree on certain things, and such situations are likely to happen no matter how well you and your partner get along.  

When doing business with others, you need to accept one thing:

Some kinds of disputes are almost inevitable when two or more people work together. But the problem with partnership disputes is that they can escalate into costly legal battles and leave the business in a downhill spiral.  

At Matthew R Harris Law P.C., the partnership disputes lawyer in Toronto, Ontario, understands the urgency and sensitive nature of rifts among partners. The lawyer works diligently to help clients obtain positive outcomes, de-escalate conflicts, and avoid the courtroom whenever possible while also minimizing disruptions to the business and potential loss of revenue.  

Why Do Partnership Disputes Occur?

As the name implies, a partnership dispute is any disagreement between two or more partners in an enterprise. According to the official website of the Government of Canada, business partnerships are bound by the actions of any member of such partnerships.  

Trust and shared vision are the foundation of every partnership. Running a business with someone else requires all partners to act with honesty and show fairness to each other. Sometimes, however, partners may disagree on different matters, which can result in disputes.  

While partnership disputes may occur for a variety of reasons, some of the most common ones include:  

• Financial disputes: Any disagreements over profit-sharing, distribution of funds, investments, and other financial matters tend to be the most destructive ones as they can erode the foundation of trust.  

• Management and direction disputes: Even if partners were in agreement over the company’s direction, its day-to-day operations, management, or decision-making authority, when starting the business, their opinions may change over time.  

• Breach of contract disputes: When partners have a partnership agreement and one believes the other fails to fulfill their obligations under the contract, they may end up having disagreements.  

• Ownership disputes: As the company grows and evolves, partners may have conflicts over the equity shares, ownership structures and percentage, and other ownership-related matters.  

• Disputes over resources: Often, disputes among partners may involve allegations of fraud, misuse, embezzlement, or theft of partnership funds and assets.  

• Disputes over expansion: Some partnerships may run into problems when partners have different opinions on expanding the business and entering new markets.  

• Disputes over dissolution and exit strategies: When any partner wants to dissolve the partnership or leave, the exiting partner and remaining partners may disagree on the dissolution and division of assets and liability.  

No matter what your partnership dispute is about, it has the potential to paralyze the business’s operations and cause financial loss if left unresolved. The Toronto partnership disputes lawyer at Matthew R Harris Law P.C. understands what’s at stake when partners don’t see eye to eye, which is why he is committed to helping clients secure customized legal solutions. 

How Can a Partnership Dispute Be Resolved? 

When it comes to finding the most appropriate solution to a partnership dispute, it’s necessary to identify the root cause of the disagreement. Depending on the nature of the dispute and whether it has caused a breakdown in the relationship between the partners, possible solutions may include:  

1. Negotiation: Sometimes, partners may be able to resolve their disputes by sitting down together and openly discussing their perspectives and listening to each other’s concerns. This form of negotiation may help them reach a mutually acceptable solution. The downside? If the dispute has gone too far, partners may not be open to communication and may lack a willingness to compromise.  

2. Alternative dispute resolution (ADR) methods: When negotiation doesn’t work, partners may resort to ADR methods such as mediation or arbitration. Both of these methods involve working with a third party. In mediation, it’s a neutral mediator who facilitates communication between the parties but doesn’t decide the case. In arbitration, it’s an arbitrator who has the authority to decide the matter and issue a binding decision. The downside? ADR methods may not provide the full range of remedies available through litigation. 

3. Litigation: When out-of-court options to resolve a partnership dispute don’t produce a desired outcome or are inappropriate, partners may bring their cases to court. If this happens, both parties will present their matter in front of the judge who determines the outcome based on the circumstances of the case. The downside? Litigation can be a lengthy and costly process with an unpredictable result since the parties have no control over the outcome.  

4. Dissolution of the partnership: Sometimes, partners may decide that dissolving the partnership may be the most effective course of action. This option may be appropriate when differences between the partners become irreconcilable. The downside? The partnership, as the legal entity, will no longer exist, leaving the partners without a source of income.  

If you aren’t sure which option will be most suitable for your situation, you might want to consult with an Ontario corporate lawyer. The lawyer at Matthew R Harris Law P.C., can review the specifics of your disagreement with the partner(s) and advise you on the options available to resolve your conflict with minimal impact on the company and its operations.  

Why Choose Matthew R Harris Law P.C.?

Disputes between you and your partner can arise unexpectedly and threaten the very foundation of your enterprise. It’s during these tumultuous times that you need a legal ally who can guide you toward a favorable outcome. The lawyer at Matthew R Harris Law P.C. has extensive experience in resolving disputes and prides himself on:  

• Handling each case with a thorough assessment. This involves understanding the dynamics between the partners, the nature of the conflict, and the specific legal issues at play. The strategy is not a one-size-fits-all template but a carefully crafted plan designed to address the specific needs and goals of the business partners involved. 

• Providing customized solutions. No two partnership disputes are alike, and neither should the solutions be generic. By working closely with clients, Matthew R Harris Law P.C. develops tailored strategies that address the specific issues at hand. Whether it involves negotiating new terms, mediating discussions, or pursuing litigation, the solutions are crafted to achieve the best possible outcome for the client.  

• Promoting constructive communication. Matthew R Harris Law P.C. places a strong emphasis on fostering open and constructive dialogue between partners. By facilitating communication, the lawyer helps partners understand each other’s perspectives and work towards a mutually beneficial resolution. 

• Mitigating risks through proactive measures. Risk avoidance is a crucial aspect of managing partnership disputes. Matthew R Harris Law P.C. adopts a proactive approach to identify potential legal pitfalls and implement measures to mitigate them.  

• Taking a business-focused approach. The lawyer’s business-centric mindset means that all legal strategies are designed with the long-term success of the business in mind. Rather than seeking quick fixes, the law firm focuses on sustainable solutions that enhance the stability and growth of the business. This might involve renegotiating agreements, restructuring partnerships, or exploring alternative business models. 

Navigating partnership disputes requires a combination of legal knowledge, strategic thinking, and a deep understanding of business dynamics. Matthew R Harris Law P.C. offers all these and much more to help his clients reach resolutions that meet their immediate and long-term needs.