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Taking Your Partnership Dispute to Court Versus Resolving It Outside of Court


A partnership dispute can arise out of nowhere, which is why it is natural to consider all available options. The first option is to go to court and go through the lengthy and oftentimes expensive litigation process.

The second option is to resolve the disagreement outside of court, preferably with the help of an Atlanta partnership dispute lawyer who will facilitate communication and assist in finding the middle ground.

A knowledgeable business litigation attorney will help you determine the most optimal way to resolve any disputes that you may be having with your business partners or shareholders.

Should You Resolve Your Partnership Dispute in Court?

There can be various factors behind a partnership dispute, but going to court should be reserved for cases that cannot be resolved by any other means.

In some cases, taking your partnership dispute to court is necessary and beneficial, especially if:

  • Your business partner has committed an egregious violation (e.g., suspected fraud or embezzlement);
  • Your partner has done extensive damage to your business; and/or
  • The dispute cannot be resolved through negotiation or mediation.

However, going to court can affect the future of your company, which is why this is a decision not to take lightly. If you are planning to continue doing business with your partner after this particular dispute comes to an end, going to court will likely permanent damage the business relationship.

In addition, taking your partnership dispute to court will make it public record. Thus, depending on the nature of the dispute, the reputation of your company could be at stake. Public infighting among the partners can repel current and potential customers.

Should You Resolve the Partnership Dispute Outside of Court?

The vast majority of partnership disputes are resolved outside of court. In many cases, the prospect of going to court encourages the parties involved to do their best to reach a consensus through out-of-court negotiations.

As mentioned earlier, going to court is not only a costly and lengthy process, but it can also harm your reputation. However, if it is not possible to negotiate the disagreement on your own – even with the help of an Atlanta partnership dispute attorney – the next option that you have is the mediation or arbitration process.

While mediation requires you to work with someone who will effectively facilitate communication between business partners, arbitration involves one or more arbitrators who make legally binding choices for you. Nonetheless, arbitration is more private, less formal and less expensive than litigating your partnership dispute.

In addition, you can select an arbitrator who has experience in your industry or has handled similar partnership disputes in the past to ensure the most appropriate and favorable outcome. If neither mediation nor arbitration brings an end to your partnership dispute, going to court may be your only remaining option.

Our Atlanta business litigation lawyer at Carroll Law Firm will create a customized plan to help you reach a consensus in your partnership or shareholder dispute. Call at 404-816-4555 to determine your best option.


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