– A partnership in Florida is created when two or more people associate to carry on a business for profit.
– Intent to form a partnership can exist even without a written or verbal agreement.
– The formation, operation, withdrawal process, and dissolution of a Florida partnership are typically governed by the Florida Revised Partnership Act, the Florida Revised Uniform Limited Partnership Act, and the partnership agreement. – Breach of partnership agreement
– Breach of fiduciary duty
– Disputes over use of partnership funds/assets
– Disputes over decision-making authority
– Allegations of fraud and misrepresentation
– Expulsion of a partner
– Disputes over future business endeavors
Partners owe each other limited fiduciary duties of loyalty and care in Florida. The duty of loyalty includes holding partnership funds/property in trust, avoiding self-dealing or competition with the partnership, and refraining from acting on behalf of adverse parties. The duty of care requires partners to carry out partnership conduct without gross negligence or extreme recklessness. Examples of breaching fiduciary duty include misappropriating partnership assets, awarding business contracts to their own company, or disclosing confidential information. Breach of fiduciary duties can result in injunctions, compensatory and punitive damages. 1. Disputes related to breach of fiduciary duty may arise after partnership termination or the death of a partner.
2. When partners disagree on use of company assets, they may need to seek legal guidance or relief in court.
3. A partner can be removed from a partnership in Florida through the partnership agreement or by unanimous vote of the other partners.
4. Whether a partnership in Florida has to continue to employ a minority partner depends on the partnership agreement or court determination. 1. In Florida, if a partnership cannot be resolved amicably, an accounting may be required to determine the financial rights of the partners.
2. Partners in Florida have access to the books and records of the partnership under Florida Statute § 620.8403, which can be used to vet a potential lawsuit for an accounting.
3. Partnership disputes in Florida can be resolved outside of the courtroom through non-conventional agreements or alternative dispute resolution methods. – Arbitration can be a good option for resolving partnership disputes, as it allows parties to agree on a decisionmaker and offers confidentiality.
– Negotiation, whether through mediation or informal processes, can also be effective in reaching a resolution that works for all partners.
– Attorney fees may be recoverable in Florida for prevailing in a partnership dispute, depending on the partnership agreement and Florida partnership statement. It is advisable to speak with a Florida partnership lawyer to determine recoverability. – Cantrell Astbury Kranz, P.A. is a litigation boutique that focuses on non-compete and unfair competition disputes, employment law, and business disputes in Florida and Georgia.
– They handle business disputes, breach of contract, partnership disputes, franchisor and franchisee issues, securities and FINRA matters, defamation, libel, and slander cases, sexual harassment claims, non-compete and employee mobility issues, unpaid commissions and bonuses, discrimination, harassment, retaliation, Family and Medical Leave Act cases, and executive compensation matters.
– The firm is structured into practice groups, with senior attorneys who are both trial tested and subject matter experts in their respective areas of law.
https://caklegal.com/florida-partnership-disputes-faqs/
Leave a Reply