Can I Sue My Business Partner for not Working?

Generally, you can sue your business partner for not working if it is a breach of partnership agreement. This means your partner is acting in a manner that is contrary to your agreement. While suing your business partner can be the most difficult decision, it may be the only option to hold them liable for their actions. 

Suing your business partner may not be an easy process. It’d be best to work with an experienced business and litigation lawyer to guide you. The lawyer can help you determine and see what options you may have to sue your business partner and answer all the questions you may have. 

What are My Rights as a Business Partner? 

Business partnership rights depend on the provisions of the agreement. But the law confers specific rights on business partners. Here are your rights as a business partner. 

  • Right to inspect business financial records and statements. 
  • Rights to share profits of the firm while also being liable for losses. 
  • Right to feedback and expression of ideas during decision-making. 
  • Right to indemnification, compensation for losses and expenses.
  • Right to use the partnership property for business purposes.
  • Right to be consulted on operational and management matters affecting the business.
  • Right to retire from the partnership with the partner’s consent. 
  • Compensation for the losses or damages caused by other partners that affected the business. 
  • Right to dissolve the business at any time.
  • Right to sue a business partnership for the breach of the partnership agreement. 

It’d be best to keep reviewing your rights as a business partner to help you make informed decisions, especially when things do not go as expected or your partner violates your rights.

How Do You Deal With an Unreasonable Business Partner? 

When disputes arise between you and your business partner, you may try to resolve them amicably. If your partner continues to make the situation difficult and act unreasonably, and proves impossible to work with, here are workable ways to deal with the situation. 

Revise Your Partnership Agreement 

If your partner is being problematic, you should check your partnership agreement as a starting point for a discussion and provide clarity about your stand from a legal point of view. You may need to enforce specific guidelines to see if you can navigate the problems you are facing and hopefully resolve the dispute. If things do not change after reviewing the agreement, it could be time to take legal action against your partner. 

Hire a Business Litigation Attorney to Assist You 

Hiring an attorney can be helpful when in partnership with an unreasonable partner, especially after doing all you can without seeing positive changes. The attorney can offer legal counsel and advise you on the best possible legal way to solve the issue. 

Most of the time, the best option at this point would be to sue your business partner for breaching the partnership agreement. For this reason, it’d be best to hire an experienced business litigation attorney who understands the processes and can navigate the case to help you find a favorable solution.  

Let Go of the Business Partnership

Once the court gives a judgment, it’d be best to let go of your partnership. This could be the most difficult decision, especially after investing your time and other resources in the business. But it could also be healthy for you to let go because going back to the partnership could even worsen the situation. However, before you end your partnership, you should seek legal guidance from your lawyer to advise you and help you end things the right way. 

Can You Force a Business Partner Out?

Depending on the law and your partnership agreement, you may or may not force your business partner out. The steps you take should be according to the law and apply to your situation and partnership agreement. Many times, you can force your business partner out if:

  • Your partnership agreement states so under specific circumstances. 
  • Your business partner engages in an illegal activity that affects the business.
  • Other shareholders vote to remove the partner from the business.
  • You decide to solve the business under various circumstances.

It is worth noting that every partnership agreement is unique, and the law differs from state to state. Consider seeking legal advice from an experienced, independent, and knowledgeable business litigation attorney to guide you on the best possible legal steps.