Target Focus: California Partnership Disputes, Shareholder Litigation & Breach of Fiduciary Duty
A business partnership can become extremely difficult when the owners no longer agree about money, management, company assets, or the future of the business.
Disputes may arise when one owner believes another partner is diverting company funds, taking business opportunities, excluding a co-owner from management, entering unauthorized transactions, or otherwise violating contractual or fiduciary obligations.
These cases often require immediate attention because business assets can continue moving while the dispute is pending.
Common Business Ownership Disputes
California business litigation may involve allegations of:
- Breach of fiduciary duty;
- Misappropriation of company assets;
- Self-dealing;
- Unauthorized transactions;
- Failure to account;
- Improper distributions;
- Ownership disputes;
- Shareholder oppression;
- Partnership dissolution;
- Buyout disputes; and
- Diversion of business opportunities.
The applicable legal rules depend on the company’s structure and governing documents.
The Importance of Financial Records
Financial documentation can be central to a business dispute.
Bank records, accounting records, tax documents, invoices, contracts, payroll information, corporate minutes, ownership records, and electronic communications may help establish what happened.
A business owner who suspects financial misconduct should preserve relevant documents and avoid destroying or altering potentially relevant information.
Emergency Court Relief
In some circumstances, waiting for an ordinary trial may create substantial risk.
Depending on the facts and applicable law, counsel may evaluate whether temporary restraining orders, preliminary injunctions, receivership, or other forms of equitable relief are appropriate.
Emergency remedies are fact-specific and are not automatically available merely because a business dispute exists.
Buyouts and Dissolution
Sometimes the best resolution is a negotiated buyout rather than continued litigation.
Other disputes may require judicial dissolution or another formal remedy.
The appropriate strategy depends on the company’s governing documents, ownership structure, financial condition, and the parties’ objectives.
Leeran S. Barzilai, A Professional Law Corporation handles California civil and business litigation. Our firm can review partnership and shareholder agreements, financial records, corporate communications, and other evidence to evaluate potential claims and defenses.
If you believe a business partner or shareholder is misusing company assets or interfering with your ownership rights, contact our office promptly.
Phone: (619) 436-7544
Email: receptionist@lbatlaw.com
Website: https://lbatlaw.com/
