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“If I can give them more than 5 stars, I would. I really can’t thank this firm enough. I came across LibertyBell Law Group after a recommendation from my next door neighbor. I needed legal help on a pretty complex matter. After speaking with their office a few times I decided to hire them. I am so glad I did.” — A.G.

, A Quick Guide to Common Partnership Disputes in Los Angeles

A business partnership has many similarities to a marriage. Just like in marriage, the involved parties must make decisions together and solve problems together. Business partnerships can also involve disputes and separations. A small business attorney in Los Angeles can help you resolve a discourse as smoothly as possible.

If a resolution isn’t possible, a business law firm can help you end the partnership and go your separate ways. There are plenty of issues that can arise in a business relationship, and an expert can help you negotiate them effectively.

Common Types of Partnership Disputes

Partnership disputes are common, and they can have a major impact on small business owners. They can lead to a lack of trust and other problems within your Los Angeles business. They range from disagreements about employment contracts to different ideas about how to run the business.

Even the smallest disputes can potentially become larger issues, especially if left unaddressed. A business law attorney can provide counsel and help you find practical, cost-effective solutions.

Most disputes tend to fall into a few categories. Below, we’ll discuss the many legal matters that can affect business partnerships.

Business Decision Disputes

It can be tough to get multiple people to agree upon a set of business goals. If you and your business partner are having trouble agreeing upon a business planning decision, you may find yourselves involved in a dispute.

For example, one partner may want a particular type of business formation and the other may disagree. The business structure of your company is a fundamental, essential part of how you operate, and it can be tough to resolve this type of dispute on your own. In this situation, you may want to get practical counsel and meet with financial planners.

Business Conspiracy

A business conspiracy describes a situation where a group of people works together in a conspiracy to damage a business. This can include physical acts of sabotage, such as damaging equipment, or acts that are done to damage a company’s reputation.

For example, if a business partner works with a group of people, perhaps competitors, to lure customers away from a company, that is an act of business conspiracy. When you’re dealing with this type of dispute, it can be difficult to move forward.

Our law firm provides customized solutions for every situation.

Theft of Confidential Information

Theft of confidential information covers both intellectual property and customer information. Intellectual property law is designed to protect unique information that a company uses for its operations. Our business attorneys can help you litigate the matter and come to a solution.

For example, a particular recipe that a restaurant uses could be considered confidential. If an employee or business partner passes on that proprietary recipe to a competitor or uses it to open their own restaurant, that is considered theft of confidential information.

A Los Angeles litigation attorney has the expertise to help you protect your intellectual property and find a solution when you are in a business partnership with someone who has violated your trust.

Breach of Contract

A breach of contract is a failure to live up to all the terms and clauses of a contract. This is a serious business matter that can affect your partnership and business.

For example, if one partner was required by contract to perform fiduciary duties, but failed to do so, that may be considered a breach of contract.

If one party believes the contract was vague or incomplete, it may be the subject of litigation. Los Angeles business lawyers can help you assess the business contracts and determine whether or not they were valid.

Contract drafting is a complex field that requires help from a business law attorney. It often comes up in employment matters, but it’s equally important between partners.


Embezzlement refers to using company property for personal use. Although this often involves money, it can also be other types of company property. Embezzlement can have a major financial impact on large and small businesses alike.

Stealing office equipment for personal use is one example. Another may be stealing customer information or using a company credit card for personal expenses. Embezzlement takes many forms, and can even involve real estate matters.

Division of Profits and Loss

Division of profits and losses is an important feature of any partnership. It determines how the two partners divide their gains or losses. This is often covered in the general partner contract, but if it isn’t, it is assumed to be equal between both parties.

In this type of dispute, the partners are disagreeing on their share of the net profits or losses. For example, Partner A wants 50% of the profits, while Partner B argued that he is entitled to 70% of the profits. If the business has a net loss, the partners may disagree about who takes on more of the loss.

Misappropriating Funds

During the course of business transactions, money changes hands many times and between many different players. This creates the potential for misappropriation of funds. Misappropriation is any kind of misuse of business funds, such as for personal gain or any other unauthorized purpose.

For example, if an employee takes money designated to pay for a business expense and uses it to buy a new set of speakers, that would be considered misappropriation. This can degrade trust and lead to financial problems.

Let LibertyBell Law Group Handle Your Partnership Disputes

If you work with a partner, it’s essential to have a Los Angeles litigation attorney who will protect your interests and help you settle business disputes as they arise.

Get in touch today to make an appointment with an expert from our law firm! We help companies create effective, flawless contracts that protect their companies. LibertyBell Law Group can give you a free consultation and discuss potential solutions to your legal issues.

Contact us at 866-792-2120 at LibertyBell Law Group today!

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