Minnesota Partnership Disputes Lawyer

Partnership Disputes Attorney in Minnesota

In Minnesota’s bustling construction sector, many of these projects, such as residential buildings in Minneapolis and commercial spaces in St. Paul, thrive on partnerships. These partnerships are vital to growth and innovation; however, disputes can arise between partners, and these disputes have the ability to harm construction projects, businesses, and reputations alike. In these situations, an experienced Minnesota partnership disputes lawyer can help protect what you’ve built.

At Minnesota Construction Law Services, we have over a decade of experience helping business partners when disputes arise. When you find yourself deadlocked in a disagreement with your construction business partner, whether you are a home builder, contractor, subcontractor, or architect, this dispute can pose major financial risks, and you will need an attorney to guide you through the necessary steps in order to reach a resolution that protects your business and your future.

At MNCLS, we understand how difficult partnership disputes can be. We work to reduce that burden so you can stay focused on your business and its long-term success.

Business Divorce and Partnership Dispute Resolution

Partnership disputes can be as disruptive and emotionally charged as a divorce—costing time, money, and long-term stability. The business itself often bears the brunt of the conflict. When partners disagree or can’t find a way to resolve their differences, it causes a major disruption to the business. Partnership disputes arise for many different reasons. How easily the disputes are resolved typically comes down to whether there is a written partnership agreement and how well it was written. When a partnership agreement doesn’t exist, lawyers must thoroughly analyze the situation to try to help the partners create a fair resolution that protects the business.

The team at Minnesota Construction Law Services understands the destructive nature of partnership disputes; we know the monetary, emotional, and relationship tolls it takes. Our experience allows us to understand the business owners’ perspectives while considering the condition of the business when advising the resolution process. We make business divorce as easy as possible to protect the business and the partners.

Common Partnership Disputes in the Minnesota Construction Industry

In 2019, there were estimated to be 4,280,690 partnerships nationwide. Business partnerships, especially in the construction sector, can have many benefits. You might be a licensed home builder, while your partner is a licensed plumber or electrician. However, disputes are common, including those regarding the following topics:

• Financial issues. One of the most common reasons for partnership disputes in the construction sector in Minnesota includes those arising over how money is managed within the business or distributed amongst the working partners. This can also include issues involving financial mismanagement, profit-sharing disagreements, and disputes regarding partnership accounting, all of which can break down partnerships.
• Unequal work. When a partner feels as though they are being overworked while their partner is taking more and more time off, or when the workload is simply not distributed fairly, this can lead to tension. It can quickly snowball from there, leading to other disputes regarding miscommunications and financial issues.
• Intellectual property disputes. When disagreements arise regarding the ownership of certain intellectual property rights, this can cause stress and tension between the partners. Though these disputes are typically not as common in the construction sector, an attorney can help resolve the legalities when they do occur.
• Conflicts regarding company direction. When two or more partners do not have the same vision for the direction of their shared business, this can lead to disagreements. This might include situations where one partner wishes to expand and the other does not.
• Miscommunications. Often, partnership disputes simply come down to a case of miscommunication or misunderstanding. An attorney can step in as a neutral third party to clarify issues, identify the source of confusion, and help guide both partners toward a practical resolution.
• Breach of fiduciary duty. When one of the partners acts in a financial manner in their own interest rather than in the interest of the company or in the interest of their partnership, trust can break down between the partners, which can harm the entire business.
• Breaches of contract. When a contract is not followed or there is a failure to honor the partnership agreement, this can lead to legal disputes and the need for an attorney. However, in these cases, it is important to be aware of the statute of limitations and the deadlines for when these disputes can be filed.

How to Avoid Partnership Disputes in Minnesota

Thankfully, there are several ways you can build your construction company and partnership in order to avoid certain legal disputes that may arise. The most common strategies to avoid these disputes and build a strong construction business partnership include:

• Create a written partnership agreement. A clear, well-drafted agreement is the foundation of a stable partnership. While you are not required to create these agreements under Minnesota law, a written agreement can reduce the risk of misunderstandings and offer a reliable path forward if issues arise.
• Commit to open communication. Partnerships thrive when the parties involved can engage in open and honest communication with one another. It is vital that you stay in touch regarding all financial matters and plans for your business.
• Build a strong framework. From the beginning of your partnership, it is vital to assign certain roles to each of the partners and establish clear boundaries and expectations.
• Find an attorney. Even if there are no current issues between you and your partner, retaining an attorney can be essential to the successful formation of your business, and they can also help you resolve any disputes that may arise in the future.
• Plan for the worst. In your partnership agreement, it is important to lay out plans for any possible life events, such as an illness, divorce, or death. Provisions that can be built into the agreement for these events include a buy-sell agreement, a succession plan, or insurance policies.

Resolving a Construction Partnership Dispute

Depending on the circumstances of your dispute and the nature of your construction business, there are several ways you may be able to resolve a construction partnership dispute in Minnesota. The most common options for disagreement resolution include the following:

• Reaching an agreement through successful and legal mediation
• Dissolving the business in a legal manner, with or without the assistance of the court system in Minnesota
• Having one of the partners buy out the others involved in the business
• Working to have all current owners and partners of the business agree to sell the business to another third party
• Working to attempt a freeze-out merger in cases where you are the majority stakeholder
• Taking the case to court in order to face trial and resolve the issue through litigation
• Filing for official bankruptcy if the circumstances of your situation warrant such an action

Every dispute is different, but most can be resolved through one or more of these strategies. When you contact the attorneys at MNCLS, we can review your situation and offer you an honest assessment regarding all your legal options.

What is Our Process?

Step One: Suing or being sued?

First, we have to determine whether you are initiating legal action or responding to a claim. If we are on the offense, we spend more time on steps two and three to resolve the dispute or draft a plan. If we are on the defense, our time is limited and we will instead strategize accordingly.

Step Two: The pre-suit dispute resolution

We aim to resolve the matter in a way that benefits your business—a strategy we call the ‘business solution.’ Whether you’re pursuing or responding to a claim, we look for early resolution opportunities to avoid costly litigation. If resolution isn’t possible, we move forward with preparation.

Step Three: The planning, research, and drafting

After telling us more about the dispute, we dig deep into the provided documents and the law for extensive research. From there, we come up with our strategy for moving forward and either initiate or respond to the claim. We also gather additional information or data for the case.

Step Four: The discovery

After the claim has begun, we start the process of finding out what the other side knows and the documents they have through written and in-person discoveries. The purpose of the discovery process is to gauge the opponent’s offense or defense to ensure we are properly prepared.

Step Five: The motion practice

During the discovery process, we also enter into motion practice. Motion practice is where the attorneys are asking the court to do something, such as dismissing the case, asking the other side to produce a document or answer a question, or excluding a witness or document from the case.

Step Six: The mediation

The court almost always requires an alternative dispute resolution. At MNCLS, we always participate in mediation unless arbitration is required by the court or the contract. Mediation is similar to our pre-suit dispute resolution, but it is done in front of a neutral party to establish a resolution without the use of litigation.

Step Seven: The pre-trial

Pre-trial preparation involves not only preparing our argument for trial but organizing all of our court documents, providing our witnesses with notice, drafting our jury instructions and verdict form, and many other final details to prepare for a favorable trial.

Step Eight: The trial

A trial can range from one day to several weeks. Most cases that we have are between 1-5 day trials. The number of days at trial depends on the dispute, whether we were able to narrow issues down through our motion practice and the number of documents and witnesses.

Common Issues in Business Partnership Disputes

Oftentimes people decide to go into business together because they are friends or family members. While the initial partnership goes well, over time the friends or family members develop different personal and business goals. As their reasons for being in business change, their ideas about how the business should operate can start to create harmful strifes between the partners. When partners begin as friends, they don’t think it’s important to spend time or money on a written partnership agreement. When problems arise, there is not a predetermined process to help them resolve the issues. Our lawyers know how to deal with business partnership disputes and how to navigate the best possible solution. In addition, we help partners create business-specific and detailed contracts so your business and partnerships are protected in the future.

Speak to a Trusted Partnership Dispute Lawyer Today

If you are facing construction partnership disputes in Minnesota, the team at MNCLS can help you find resolution and protect your business. We understand how difficult these cases are, and we are here to assist you and your business every step of the way. Contact the offices of Minnesota Construction Law Services today to schedule your consultation. We are here to help you avoid legal problems and ensure the longevity of your business for years to come.