It’s important to properly prepare when starting a new partnership. You should also speak with a skilled Washington DC business dispute attorney to make sure you have a well-drafted partnership agreement in place. This is one of your best defenses in a partnership dispute.

Common Types of Partnership Disputes

Here are some of the more common disputes that arise in business partnerships:

• Breach of Contract: Breach of contract is probably one of the most common disputes in a partnership. You can have verbal and written agreements between partners, which is why having an expert draft your partnership agreement is so important.
• Misuse of Trade Secrets: Many businesses rely on confidential information that helps them gain an edge over their competitors. This can include proprietary information on technology, formulas, processes, etc. If one person uses this information without permission or uses it after they leave, it is misuse of trade secrets.
• Breach of Fiduciary Duty: Partners rely on each other keeping their commitment to further the business and put the business’ needs first. If one partner breaches their fiduciary duty, it will bring about a dispute.
• Failure to Distribute Work Loads in a Fair Manner: Partnerships vary as some may have silent partners who only contribute funds, while others have all partners involved in the day-to-day operations. A failure to fairly divide the workload could cause a dispute between partners.
• Disputes Regarding How to Use Resources: Conflicts can arise over the use of financial resources. Maybe one partner wants to purchase new equipment for the business and the other partners don’t feel it’s necessary.
• Failure to Define Authority: You need to have a clear understanding of who has authority and for what. A failure to define who is in charge of what will almost always open the door for a number of disputes as your business grows.

There are countless other types of disputes that can arise which require some legal research. For instance, there could be a dispute on who can be held liable for product liability claims or for reimbursing a customer’s damages due to injury.

What to Do When a Partnership Dispute Arises?

Once a dispute arises, it’s important to contact an experienced business litigation attorney as soon as possible. An attorney can review partnership documentation and determine if you have anything in place for dispute resolution and what your options are. Your attorney can also help you identify different methods available for dispute resolution. Alternative dispute resolution (ADR) can include options like arbitration or mediation.

Retaining a Washington DC Business Litigation Attorney

Partnership disputes often involve complex legal issues and may lead to a lawsuit. Contact the office of Tobin O’Connor Concino P.C. at 202-362-5900 to schedule a consultation.

If an employee feels you’ve discriminated against them for any of these reasons, they can file what’s known as a Charge of Discrimination. This is a signed statement that says you engaged in discriminatory practices and requests the EEOC to take immediate action.

Employees must file a Charge of Discrimination prior to proceeding with a job discrimination lawsuit against you. In addition, states and local jurisdictions have their own Fair Employment Practices Agencies that enforce employment-related anti-discriminatory laws. If an employee files with a local FEPA, it will also be filed with the EEOC if federal laws are applicable.

EEOC Investigation

It does not matter whether the employee’s complaint has any merit, but you will be investing both time and money dealing with the issue. You will receive notice from the EEOC who will ask for your statement of position, which is essentially your version of the details. There will be a formal request for you to supply relevant information and documents, like personnel files and HR documents. EEOC staff may visit your business, and even ask to interview other employees.

If the case proceeds into formal litigation, you will incur costs along the way. If you opt to settle through mediation or settlement, you are likely paying out money to the employees who complained, or at least altering policies and/or procedures. Employers can compensate employees without admitting liability, and the settlement agreement can remain confidential.

It’s important to understand the EEOC can deny your request for mediation if they feel the matter is too serious. It can sue you, and if they don’t sue, the employee who filed the complaint still has the right to sue.

Penalties

You may have penalties in connection with EEOC claims. These can include paying back wages, promoting them, reinstating their jobs, etc. It will depend on the subject matter of the complaint. You can even be held responsible for the employee’s legal expenses, and the award can be much higher if the case proceeds through litigation. Courts have the right to award compensatory and punitive damages. There is a cap on damages, which is based on the number of employees you have. Cases that involve sexual or age discrimination are limited in damages to the amount that is equal to their lost wages.

Retaining a Washington DC Business Litigation Attorney

Having an employee bring an EEOC claim against you can seem scary. Retaining a Washington DC business litigation attorney who has experience with employment law matters is key. You need someone who understands how these cases work and can help protect your business’s interests. At Tobin O’Connor Concino P.C., we have experience in all areas of business litigation, including complex EEOC discrimination claims. Contact our office at 202-362-5900 to schedule a consultation.