Partnerships can be a great way for business owners to pool their resources and create a successful business. However, when disputes arise between partners, they can lead to business interruption and even legal action. While it is often best to avoid partnership disputes altogether, there are times when they are unavoidable. When this happens, it is important to know how to resolve the dispute in a way that is fair to all parties involved.
Get a mediator
Mediation is a process where an impartial third party helps partners resolve their differences. This can be an effective way to resolve a partnership dispute without going to court. The most unique aspect of mediation is that it allows the parties (with the guidance of a trained mediator) to come up with their own solution to the problem, rather than put the problem in the hands of a judge or jury.
Arbitration is a more formal process for resolving a business law dispute. In arbitration, the parties present their case to an arbitrator, who then makes a decision on the dispute that is binding – that is, you must abide by the decision of the arbitrator, even if you do not agree with it. Arbitration is often a far faster and less expensive way to resolve a partnership dispute than going to court. People also use arbitration because it is often more confidential than going to court.
Go to court
If mediation does not work, and the partners do not agree to go to arbitration, the final option is to go to court. This is often the least desirable option, as going to court can be time-consuming and expensive. It is also important to note that if you go to court, you must abide by the decision of the judge or jury, even if you do not agree with it.
No matter what method you choose to resolve your partnership dispute, it is important to remember that communication and compromise are key. Try to stay calm during the process and avoid getting emotional or irrational as much as you can to make it easy for you to reach a resolution that is acceptable to all parties. If you follow these tips, you may be able to resolve your partnership dispute in a way that is satisfactory for everyone.