Partnership/Ownership Dispute Law
Vancouver Partnership/Ownership Dispute Lawyers – Commercial Litigation & Advocacy Law Firm
Partnership/Ownership Dispute Lawyers for Vancouver & all of British Columbia
Disputes amongst business partners are common. There are a wide variety of causes for such disputes. One partner may be taking an unfair share of the partnership monies. A partner may also be using partnership resources for outside projects. In many cases, one partner may simply be treating another in a dishonest or oppressive manner.
At Bungay Law Office, we have the experience necessary to guide you through any conflicts you are having with your business partner. We can offer you advice on the best course of action to ensure your interests in the company are protected. Ultimately, it is our goal to help you avoid litigation and settle your dispute reasonably. However, if this is not possible, we are prepared to enforce your rights in Court.
— Providing Legal Solutions for Business —
Downtown Vancouver Business Partnership/Ownership Dispute Lawyers
Bungay Law Office 604-684-4300
Failing to deal with a partner in good faith
The law in BC imposes an obligation on every business partner to act in good faith. This means that a business owner must treat his or her partners fairly and honestly, and act in a manner that is in the best interests of the company. If your partner is acting dishonestly or unfairly, he or she is in breach of BC’s partnership laws. If your partner is acting inappropriately, there are legal sanctions which can punish him or her for this conduct. There are also legal remedies to ensure you are compensated for any losses you incur as a result of the poor behaviour of your business partner.
Inappropriately taking money from the company
In some cases, a business owner may withdraw money or take assets from the company without the consent of the partnership. A partner who acts in this manner is breaking the law of partnerships in British Columbia. Generally, each partner is entitled to an equal share of the partnership’s assets. A business owner who inappropriately takes money from the partnership is accountable to pay this unfair share back to the company and the other partners. If such misconduct occurs in your company, we can ensure you are fairly compensated.
Disputes over payment: Who is entitled to what amount?
Many disputes arise between business owners with respect to how much each is entitled to share in the profits. One partner may feel they have made a more significant contribution, and thus are entitled to a larger share. Confusion also arises over how each partner should be paid. Generally, unless there is a written agreement setting out different proportions of compensation, each partner is entitled to share equally in the profits of the partnership. A partner cannot simply take a larger share because he or she feels they are entitled to it based on their efforts. If you feel that you are being unfairly compensated from the profits of the partnership, we can help to ensure you receive an equal, fair portion of any profits.
Vancouver Business Partnership/Ownership Dispute Lawyers 604-684-4300
Ending the partnership
If you are unable to carry out business effectively, or if you feel that your partner is acting dishonestly, it may be necessary to end the partnership. This is done by applying to the BC Supreme Court for an order to dissolve the partnership. The issues which arise from this process are complex, and should not be approached without the assistance of an experienced commercial litigation lawyer (business dispute lawyer). If you want to dissolve the partnership, protections exist in the law to ensure you receive a fair share of the company’s assets and revenues.
If you intend to carry out work in the same industry after the partnership ends, it will also be important to understand what rights you have with respect to the current customers of your business. Prohibitions may exist to prevent you or your partners from soliciting existing customers. Failure to adhere to these prohibitions can be costly.
Defamatory comments to others about a former partner
If a business relationship ends poorly, one partner may speak negatively about another to existing clients or customers. Such comments are defamatory and are prohibited by BC law. Making defamatory comments about another person calls for an award for damages in law for pain and suffering. Moreover, if the defamed person loses business as a result of such comments, he or she may be entitled to further awards for any past and future losses caused by this harmful conduct.
Misrepresentation by a partner
When partners are forming a new business, they are often not aware of each other’s complete history. At the outset of negotiations, the law imposes an obligation upon each partner to disclose any information critical to their business relationship. This information would include any negative aspects of their respective work histories or financial backgrounds. If one partner makes a false statement, or ‘conveniently’ fails to disclose important information, he or she may be guilty of the tort of negligent misrepresentation. In other words, if your partner misrepresented himself to you at the outset of your relationship, and you would not have formed the partnership if you had known about this information, this dishonest partner may be liable to pay you any damages you suffer as a result.
Being forced out
If you are being forced out of a partnership, and want to remain, you may have rights to prevent this from occurring. The first step is to look at the partnership agreement, if one exists. There may be loopholes in the partnership agreement, or situations may arise that the partners did not consider when they wrote the agreement. Either way, we can help you to find out what your rights are and how to enforce them.
Downtown Vancouver Business Partnership/Ownership Dispute Lawyers
Bungay Law Office 604-684-4300
BACK to Vancouver Business Disputes Lawyer page
Author: