How to Resolve Partnership Disputes in Florida 2025

Dealing with the fallout of a partnership dispute can be overwhelming, especially when you are also trying to run a business. The last thing you need is more stress complicating your business activities. Some partnerships simply run their course, while others are doomed from the start. Sometimes, though, something triggers the downfall of a partnership, and you have to take legal action. You may wonder how to resolve partnership disputes in Florida. There are many ways to do so.

LMK Legal can help you work out your partnership dispute or simply represent you in business litigation, which can formally dissolve the partnership and allow you to move on. Your needs for your partnership dispute are unique, and we can figure out a viable solution. Sometimes, a dispute arises due to an unfair agreement you never actually agreed to. Other times, it’s the result of blatant betrayal that forces you to cut ties.

Common Causes of Partnership Disputes

Many partnership disputes are born from years of resentment or disagreement that finally boil over into legal trouble. Running a business, especially with a partner, is not an easy task. It requires dedication, commitment, and trust. Some underlying issues between partners can violate those requirements. They can cause serious strife between partners that must be addressed. Here are two common causes of partnership disputes that occur all the time in the business world:

Breach of Contract

Many partnership disputes arise because one partner fails to adhere to the terms and conditions outlined in the partnership agreement. This could be due to operational procedures, differences in management styles, or some nefarious purpose. Regardless, it can cause serious strain on a partnership. Working with an experienced contract dispute lawyer can help you understand your legal options and take the right steps to protect your business. If your case still falls under the statute of limitations for contract disputes, you could get it resolved.

Financial Mismanagement

Money is one of the oldest causes of a partnership’s disintegration. Disagreements about money happen every day in every business in the world. If one partner feels entitled to more or uses company funds for themselves, it can result in the end of a partnership and subsequent legal action.

How to Resolve Partnership Disputes in Florida

Resolving a partnership dispute is not easy. However, if the partnership is crucial to your business or you personally, there are avenues you can take to try resolving your differences before it’s too late. Here are some of the ways you can address your partnership dispute with the help of a business lawyer:

• Negotiation and mediation. Sometimes, all it takes to resolve a dispute is a sit-down and a simple negotiation. You and your partner may wish to discuss your grievances with the help of a neutral third party through mediation. There are never any guarantees that it will fix everything, but it can be a good way to start.
• Arbitration. If mediation fails, you may want to give arbitration a chance. Arbitration is a lot like mediation. However, the arbitrator’s final decision is legally binding, and both parties have to abide by it. This is often a faster and cheaper alternative to litigation, though it can be difficult to accept the arbitrator’s decision.
• Buyout. In some cases, if one partner no longer wants to be a part of the business they share a stake in, the remaining partner can buy out their stake in said business. A business lawyer can work out a solid buyout agreement that benefits both parties and outlines the conditions of the buyout itself.
• Litigation. If all else fails and the partnership has not been resolved, you may want to take your grievances to court. Sometimes, legal action can be the strongest way to resolve a business dispute, though it can be costly and time-consuming as well.

Partnership disputes occur nationwide. Sometimes, they even occur between families and long-time friends. In Pennsylvania in 1983, two brothers and their mother started Hays Land Company (HLC) and acquired real estate properties over several years. When the company started, they entered into a written partnership agreement. When their mother died, the two brothers became 50/50 partners. Then, when one brother died, his wife inherited his stake.

When the other brother died, his daughter inherited his stake. The other brother’s wife tried to use the 1983 partnership agreement to take the daughter’s shares and ultimately won. Then, the daughter appealed to the Supreme Court, and she won. Partnership dispute cases can get messy.

FAQs

How Do You Resolve a Partnership Conflict?

There are many ways you can resolve a partnership conflict. Ultimately, you have to use the one that works well for you. You can try to sit down through mediation and negotiate a mutually beneficial settlement. If that doesn’t work, you may want to try arbitration and just go with the arbitrator’s decision.

How Do You Dissolve a Partnership in Florida?

If you want to formally and legally dissolve a partnership in Florida, both partners will first have to review their partnership agreement for dissolution clauses. From there, they will have to agree on the terms of dissolution and file a Certificate of Dissolution with the Florida Department of State. You may want to consider hiring a lawyer to look through your paperwork.

What Do You Do When a Business Partnership Goes Bad?

When a business partnership goes bad, you will have to make some difficult decisions. You can either negotiate with your partner and try to get things back to a more agreeable situation. If that fails, you may need to hire a business lawyer to help you legally dissolve the partnership. You don’t want to end up legally bound to someone you now consider to be a liability.

How Do You Handle Disputes in a 50/50 Partnership?

The most effective way to handle disputes in a 50/50 partnership is to encourage open communication and a willingness to compromise. It may be difficult to dissolve a 50/50 partnership, especially if there is a legally binding business agreement in place. At the risk of tearing down everything you’ve worked for, you should consider a rational but honest conversation.

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In Florida, between 2023 and 2024, the Florida courts reported on the number of civil cases, including partnership disputes, that have been resolved through ADR. In total, nearly 93,000 cases were ordered to be resolved through ADR, with 60,000 held through mediation.

LMK Legal can assist you in working through your partnership dispute. Contact us to speak to a valued team member about your case.