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Partnership and Shareholder Disputes in a Washington DC Business


Business disputes are a relatively common situation, no matter whether you have a partnership or corporation. When you have multiple people trying to run a company together, there is a risk of conflicts within the business as well. Disputes between partners or shareholders are common and typically require the expertise of a skilled Washington DC business litigation attorney.

It’s not uncommon for owners and managers to clash when there is a discussion on how to grow the company or what steps to take next. Healthy debate and discussion can be good. However, if you are at a serious impasse and there is no way you can solve the conflict at hand, then you may need to consider litigation to resolve it.

Common Types of Partnership and Shareholder Disputes

Disputes between partners are shareholders are not limited to only one type of industry, they can affect every type of business. Disputes can be over a variety of things, like contracts or customers. Time spent on dealing with internal conflicts is time spent away from your business and that can have detrimental consequences.

Some of the more common types of shareholder and partnership disputes include:

  • Buy-sell agreements: When company assets are being sold or when it’s time to buy new ones, partners or shareholders may disagree over the buy-sell agreement terms.
  • Management Deadlocks: This is where company management can’t move forward on something without the need for litigation to resolve the deadlock.
  • Breach of Contract: If there is a breach of contract, it may require an attorney to assist and help resolve the dispute through litigation. One side might allege the other side breached the contract while the other says there was no breach or that the initial party was actually the one who breached the contract.
  • Regulation Violations: If there is a situation where a shareholder or partner acts in an inappropriate manner that violates company bylaws, then you may need to use litigation to resolve pending issues.
  • Succession Planning: Succession planning discussions are a common source of disputes between business owners. It can present a series of complicated questions and may result in a deadlock that can only be resolved through litigation.
  • Compensation for Executives: Compensation for important management positions can also be another source of disagreement between partners and shareholders.

How to Resolve Partnership and Shareholder Disputes

When a disagreement arises, it’s important to try and resolve it right away. There will be situations where a solution is not easily reached, and that is when an attorney’s involvement becomes important.

Choosing the right Washington DC business litigation firm is an important decision. You want a firm who has experience handling these types of disputes. The right business litigation attorney can help resolve the case without too much expense and time. While you may want to draw the line in the sand and stand your ground, a lengthy litigation battle is not good for your business. Contact the team at Tobin O’Connor Concino P.C. at 202-362-5900 to schedule a consultation.

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