Partnership disputes

Partnership disputes can arise even in the most successful businesses, often placing strain on relationships and threatening the future of the enterprise. We van help you resolve your dispute.

How We Can Assist

• Strategic legal advice - analysis of your legal position and tactical approach development
• Emergency court applications - urgent injunctions, freezing orders and interim relief
• Negotiation and settlement - structured discussions and creative resolution protecting your interests
• Court representation - experienced advocacy from initial pleadings through trial and enforcement
• Alternative dispute resolution - mediation, arbitration and expert determination representation.

Common Causes of Partnership Disputes

Partnership disputes typically arise from fundamental disagreements about business direction, financial matters, or partner conduct. The most common triggers include:

• Management and financial disputes - strategic decisions, operational control, profit sharing, capital contributions and expense allocations
• Breach of duties - unauthorised transactions, conflicts of interest, misuse of partnership assets and failure to account for funds
• Performance issues - partners failing to meet obligations, poor conduct affecting reputation, or breach of partnership terms
• Succession planning - retirement terms, valuation of departing partners' interests and buy-out provision disagreements
• Valuation disputes - fair value methodologies, goodwill inclusion, work in progress treatment, minority discounts and valuation timing
• Payment and exit terms - timing, methods, restrictive covenants, client relationship transfers and outstanding fee arrangements
• Involuntary departures - expulsion grounds, notice periods, compensation arrangements and return of partnership property
• Post-departure restrictions - client solicitation limits, confidential information protection and competition restrictions

No Written Partnership Agreement?

• Partnership Act 1890 applies - may not reflect your actual arrangements or intentions
• Gather evidence - emails, texts, bank records, meeting notes, client correspondence, invoices showing actual arrangements
• Prove actual conduct - how profits were shared, who made decisions, capital contributions, historical partner treatment
• Witness evidence - from employees, clients, accountants and advisers about partnership operations

Risk of Partnership Dissolution

• Full-blown disputes may trigger automatic dissolution under partnership agreements
• Dissolution crystallises all partnership debts immediately - creditors can demand payment
• Business assets may need immediate realisation, often at undervalue
• Clients and suppliers may be lost during dissolution process
• Professional indemnity insurance coverage may be affected
• Personal guarantees become immediately enforceable

Possible Court Orders if Proceedings Go to Trial

If partnership disputes proceed to trial, courts have extensive powers to make various orders:

• Financial orders - monetary compensation, account of profits, restitution for misappropriated funds, interest awards, security for costs
• Dissolution orders - partnership dissolution, winding up with asset realisation, liquidator appointment, distribution directions, forced asset sales
• Injunctive relief - restraining orders, non-compete injunctions, asset preservation, confidentiality protection, mandatory performance orders
• Valuation orders - independent expert appointment, methodology directions, access to records, goodwill determination, work in progress assessment
• Structural orders - asset partition, buy-out requirements, management appointments, operational restrictions, compliance directions
• Enforcement powers - charging orders, freezing injunctions, asset tracing, delivery up orders, contempt proceedings