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Solving partnership disputes: a guide to business litigation

On Behalf of | Feb 20, 2023 | Business and Commercial Litigation

Business partnerships in Pittsburgh can benefit small and midsize companies, but they can also lead to disagreements and disputes that can negatively affect the business. Resolving these conflicts is essential to maintain the business’s success and avoid legal complications.

Communication and negotiation

The first step in resolving partnership disputes is to open communication channels and negotiate. Partners may find common ground and reach a mutually beneficial resolution by discussing the issues and concerns. Mediation is also an effective tool for communication and compromise between parties.


If communication and negotiation fail, arbitration can be a viable option before business litigation for resolving partnership disputes. An unbiased third-party arbitrator will hear both sides’ arguments and make a binding decision. Arbitration can be much faster and less expensive than litigation, and it can keep the dispute out of the public eye.


When all other options have been exhausted, litigation may be necessary. In litigation, each party presents its court case, and a judge or jury will decide. Litigation can be expensive and time-consuming, but it can also provide a clear resolution to the dispute.

Dissolution and buyouts

If the partnership has become untenable, dissolution and buyouts can provide a way out. Dissolution involves ending the partnership and dividing the assets and liabilities. However, buyouts allow one partner to buy out the other’s stake in the business. These options can be complex and require legal guidance to ensure a fair and equitable outcome.

Alternative business structures

In some cases, a change in the business structure may be a solution to partnership disputes. For example, forming a limited liability company (LLC) or a corporation can provide more protection for individual partners and may reduce the potential for conflicts.

Prevention strategies

Preventing partnership disputes is always better than resolving them. Business partners can implement measures such as creating a detailed partnership agreement, setting up a conflict resolution process, and engaging in regular communication and check-ins.

Partnership disputes can have serious consequences for a business, but various strategies exist for resolving conflicts. By opening up communication channels, engaging in negotiation and other strategies, partners can protect the company and maintain a successful partnership. If you’re facing a partnership dispute, seek a solution that ensures a fair and equitable outcome.