What Happens When Business Partners Disagree in Texas?

Owning and operating a business with a partner can take much of the stress out of the process. You have someone you trust to bounce ideas off of and someone who can help you brainstorm ways to grow and overcome challenges. Unfortunately, disagreements can derail your partnership, and when they do, you need to figure out your best next steps. Reaching a resolution is possible, and your Texas business owner disputes attorney can help you navigate the process.

Ways to Settle Disputes and Disagreements Between Business Partners

Every disagreement between business partners will be unique, which can make finding an appropriate resolution more difficult. However, there are a few methods you can use to help resolve things between you and your business partner. Here are some of the most common settlement methods you should be aware of.

You Can Work It Out Between Yourselves

Mediation is a conversation between you, your business partner, and a neutral third party, often an experienced Texas business owner disputes attorney who functions as the mediator. The mediator guides the conversation between you and your business partner so the two of you can figure out an appropriate solution. Any resolutions reached during mediation are considered binding and can be implemented immediately.

The benefit to mediation is that it’s typically more affordable, more amicable, and more flexible. You and your partner may be able to resolve any disagreement and get back to working together confidently.

Mediation isn’t the only negotiation tool you have at your disposal. Arbitration is a more formal dispute resolution that is overseen by a neutral third party. However, unlike mediation, the arbiter makes the final decision, and that decision is legally binding. Both you and your business partner present your arguments, and the arbiter decides on the appropriate course of action. 

Buying Them Out or Selling Your Share Is Always an Option

If you and your business partner can’t come to an agreement between yourselves or you’re not able to repair the relationship after reaching a resolution, you may want to consider buying the other party out or dissolving the business altogether. Both options will terminate the business partnership.

Go to Court if All Else Fails

If you and your business partner aren’t confident in your ability to work together to find a resolution, going to court may be the best option. Your Texas business owner disputes attorney will represent your interests before the judge who will render a decision based on the evidence you and your business partner provide. This puts the burden on the court and gives you and your business partner a clear path forward.

How to Decide on the Best Path Forward

Any of the above options can help you and your business partner settle disputes and disagreements. But choosing the best option for your situation may not seem as straightforward as it should. 

Think about your relationship and your long-term goals. If you want to move past the dispute and continue working with your business partner, mediation or arbitration may be a good choice. However, if you’re not interested in trying to smooth things over and want a fresh start, dissolving the business or letting your business partner buy out your share of the business could be a better choice. 

Taking your business partner to court is something you shouldn’t do lightly. But the judge will be able to determine a fair solution to your situation based on the case you present. If you’re considering going to court, be sure to discuss all of your options with your Texas business owner disputes attorney. They’ll help you decide if pursuing litigation is in your best interest.

Speak With a Texas Business Owner Disputes Attorney

If you’re currently experiencing a significant dispute with your business partner and aren’t sure how to proceed, don’t leave things up to chance. Schedule a free consultation with the Law Office of Sandy McCorquodale, P.C., and let our team help you choose the best way to handle your dispute.