Ways to Resolve a Partnership Dispute

Here are some of the partnership resolution methods to consider.

Operating a partnership business requires cooperation between partners. However, business disputes are inevitable. When co-owners disagree, it is vital to find a resolution quickly before ruining the relationship entirely.

A Waxahachie business attorney from the Foster Massengill, PLLC can help you resolve the dispute by explaining the contents of the partnership agreement or representing you in litigation, arbitration, or mediation process. The attorney will also provide the necessary advice you need to overcome similar challenges in the future. Here are some of the partnership resolution methods to consider.


Mediation is the intervention of a neutral party to help break the communication differences regarding business affairs. You and your co-partners will continue working together, provided you all want to continue operating the business. Unlike in litigation, where there are winners and losers, the mediator will work with you and your co-partners to bring cooperation between all members.

Mediation helps to keep the partnership dispute private. You can avoid ruining your brand's reputation or consumer confidence in your business’s viability.


Arbitration is also a private forum for dispute resolution. The arbitration process is private and takes place outside courts. However, it can be time-consuming and costly, particularly when parties fail to limit the amount of time the arbitral process should take.

In arbitration, the arbitrator has the right to make the final decision. Unlike a mediator, an arbitrator acts as a judge and listens to claims from both parties. However, the arbitrator has no right to order the dissolution of the company.


If you and the other partners have attempted agreeing on your own or the arbitration and mediation processes have failed, you might have to consider going to court. If this is the case, you need to hire a Waxahachie business attorney with experience handling such cases.

You can file a lawsuit against co-partners for breaching fiduciary duties, fraud, failing to meet responsibilities or misappropriation of assets. The judge may award compensation to cover the financial damages. A business dispute attorney will help you analyze the potential claims and offer the necessary representation in court.


In some circumstances, it may be apparent that other resolution methods can't salvage the partnership relationship. In this case, you might have to consider dissolving the partnership. Dissolution may mean selling assets, paying creditors, and distributing profit or loss among partners.

However, the dissolution process is complex, and you may need the help of a partnership dispute attorney. If voluntary dissolution fails, you might have to consider judicial dissolution.

Schedule a Consultation with a Business Dispute Attorney

At Foster Massengill, PLLC, we will offer the legal expertise you need during the partnership dispute resolution process. Contact us today to schedule an appointment with a Waxahachie business attorney. We are ready to ensure that you get appropriate dispute resolution tools for your company.

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