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How To Resolve Disputes Among Business Owners in Texas

Owning a business is exciting, stressful, and challenging all at the same time. You may run into disputes with other business owners in your own company. Someone may breach the applicable owner contract or rule, there may be an employment dispute, or even disagreement over how to move the company forward. Regardless of what this issue is, there are ways to seek resolution of those disputes under Texas law.

At the Law Office of Sandy McCorquodale P.C., we help business owners like you resolve disputes in multiple ways. Whether we can negotiate a settlement, utilize alternative dispute resolution methods, or take your case to court, we are prepared to help.

Common Reasons for Business Disputes

As a business owner, you likely know how common business disputes can be. Some are rather minor and resolve when tempers cool. Others require more in-depth intervention or even legal action.

Some of the most common reasons for disputes between business owners include, but are not limited to:

  • Breach of contracts
  • Partnership or owner disagreements
  • Employment disputes
  • Allegations of fraud or misrepresentation
  • Negligence by an owner
  • Disagreements over intellectual property
  • Arguments over financial decisions

These and other issues might arise while trying to run a business together. This is normal even, and there are multiple options that may help you resolve the matter with less stress and cost.

Dispute Resolution Methods for Texas Business Owners

There are several ways you can resolve business disputes between owners. These are some of the most common and effective.

1. Informal Discussions

Many disputes come to a head quickly and tempers flare. One or more owners may feel strongly at first, but their position may soften to one of compromise after a bit of time passes. Business owners should attempt to come back to the table together when possible. Informal discussions may help you realize you resolve your dispute amicably. If not, other options are still available.

2. Mediation

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Mediation is an organized process through which a neutral third party—called the mediator—facilitates discussions in an attempt to resolve disputes. They utilize their training and conflict resolution methods to determine what the problem is and help the parties understand potential solutions.

This is a form of alternative dispute resolution commonly used between Texas business owners. It can help you avoid litigation and the need to go to court. You can hire an attorney to act as your mediator. Each party may also bring their own individual lawyer to help represent their interests if they so desire.

3. Arbitration

Arbitration is another form of alternative dispute resolution. This is a private process between the parties. It utilizes an independent arbitrator that can make a binding decision after hearing evidence from both parties. Arbitration is similar to a trial, but is less formal and expensive.

An arbitrator listens to evidence from both sides, considers that evidence, and makes their decision accordingly. The decision is binding and typically cannot be challenged in court.

4. Business Litigation

Litigation may be necessary when other methods fail or the dispute is too serious to do anything less. This means that business owners formally file a lawsuit against one another in Texas or federal court. Litigating a business dispute may be necessary when:

  • Another owner significantly breached a contract
  • Another owner committed a theft or fraud against the company
  • The other owner refuses to settle or negotiate

An experienced business litigator is essential in these situations. Disputes between business owners are complicated matters and require a skilled hand to navigate through the complex legal process.

Get Help With a Business Owner Dispute in Texas

If you are in a dispute with a fellow business owner, you need the advice of a skilled business litigator in Texas. Your attorney can analyze your situation to determine what methods will work best to protect your rights and resolve the dispute. They are ready to handle alternative dispute resolution methods or file your claim in court when necessary.

The Law Office of Sandy McCorquodale P.C. stands ready to fight with you. Contact us today for a consultation of your business owner dispute case.