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Los Angeles Litigation Law Firm 424-284-2401

3 Personal Reasons For Business Partnership Disputes


The business partnership disputes you read about in the news tend to stem from egregiously dishonest or villainous actions, such as fraud, embezzlement, and misuse of confidential information.  Most businesses fall apart within a few years of being established, but it is usually not for such newsworthy reasons.  Most of the time, the business fails to become profitable, and the partners mutually decide to cut their losses and close up shop before things get any worse.  Sometimes, though, it is interpersonal conflicts that tank the business partnership.  These types of disputes tend to arise once you have signed a partnership agreement; before you start working together, it usually seems like the other person is just the right partner for you.  Contact a Los Angeles business litigation lawyer if interpersonal conflicts between you and your partner have gotten so bad that you are considering suing each other.

Generation Gaps and Other Scheduling Conflicts

According to Purdeep Sangha, The Strategist for Businessmen of, many disagreements between business partners arise simply because the business partners are at different stages of their lives.  If one partner has grown children and the other is a parent of school-aged kids, the older partner might welcome opportunities to travel for business, while the other would find it stressful and would prefer to meet with out-of-town contacts over Zoom.  Likewise, if one partner is single and the other has a family, the single partner might feel like she is stuck with all the work of evening and weekend meetings while the married partner is busy with her husband, children, and in-laws.

Mismatched Financial Values

Financial decisions are a main source of conflict between spouses, and likewise between business partners.  Since whether a price is reasonable or whether an investment is excessively risky are subjective judgments, there is plenty of room for disagreement about them.  Business partners sometimes blame each other when the bottom line looks discouraging.  Mismatched financial values are to business partnerships what creative differences are to rock bands.

Misaligned Ambitions

Many business partnerships begin with two people sitting at lunch and saying, “I want A, and you want B, so let’s do C.”  Having goals that differ from your partner’s goals is not always bad, especially if you envision the business with an end in sight, such as founding a startup and then selling it.  Trouble arises, though, if, for example, your goal is to generate a modest amount of passive income, while your partner’s ambition is to keep growing the business bigger, even if it means taking big risks.

Business contracts are your best friend when it comes to dispute resolution.  A business dispute lawyer can help you draft them and interpret them.

Speak With a Los Angeles Business Dispute Lawyer

A Los Angeles business dispute lawyer can help you resolve disputes related to misunderstanding, interpersonal conflicts, and other matters that are only tangentially related to the provisions of your partnership agreement.  Contact Litigation, P.C. in Los Angeles, California to discuss your situation or call (424)284-2401.


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