Business disputes between partners and shareholders are not uncommon. While the potential for disagreements is a reality of any business venture, it is essential to be prepared with strategies to prevent disputes and resolve them if they do arise.
If you are dealing with a partnership or shareholder dispute, contact Slate Stern Law to get legal guidance. Our New Mexico partnership and shareholder disputes lawyer can help you identify the best way to resolve your dispute in an efficient and timely manner to ensure that the dispute does not disrupt your business operations.
Possible Ways to Resolve Partnership and Shareholder Disputes
Let’s discuss the various methods of resolving partnership and shareholder disputes.
- Mediation. Mediation and arbitration are two popular methods of dispute resolution. Mediation is an informal process in which a neutral third party assists the parties involved in a dispute to reach an agreement that works for everyone. It often takes less time than litigation and can be much less expensive as well. However, mediation is non-binding, meaning that either party can choose not to accept the outcome of the mediation process.
- Arbitration. Arbitration is also a form of alternative dispute resolution (ADR). In arbitration, a neutral third party—an arbitrator—will hear evidence from both sides and then make a binding decision that resolves the dispute. Arbitration is generally considered faster and more efficient than litigation but still carries its own set of costs associated with finding a qualified arbitrator and preparing for hearings.
- Litigation. When all other attempts to resolve a dispute have failed, litigation may be necessary. Litigation refers to legal action taken by one or more parties against another to resolve an issue in court. This can take the form of filing a lawsuit or responding with counterclaims after being sued by another party. Litigation can be time-consuming and expensive, but sometimes it is necessary to protect your rights or ensure justice is served.
- Dispute prevention techniques. No matter what method you choose when resolving partnership or shareholder disputes, prevention should always be a top priority when it comes to avoiding future conflicts and costly litigation down the line. Structuring your business correctly from the start can help avoid issues like misunderstandings about roles and responsibilities, unclear ownership stakes, failure to document agreements properly, etc., which can all lead to disputes later on down the road. Additionally, instituting clear communication policies among partners/shareholders and establishing protocols for resolving conflicts before they become too serious will go a long way toward preventing costly arguments in the future.
When used in conjunction with traditional methods such as mediation/arbitration/litigation when needed, dispute prevention will help ensure that all partners/shareholders remain on good terms even when disagreements arise over time.
Resolve Your Partnership/Shareholder Dispute With Slate Stern Law
Figuring out the best strategy for resolving a partnership or shareholder dispute depends on several factors. It is best to consult with an experienced lawyer to help you identify the most effective way to resolve a dispute in your particular case. Contact our knowledgeable and results-driven lawyer at Slate Stern Law to discuss your unique situation. Call (505) 814-1517 to request a consultation.