Business Partnership Advisor

Together, we can fix your business and partnership problems

Chris Reich, Business Luminary

Do You Need a Lawyer or a Mediator for Your Partnership Problem?

Chris, maybe I should call a lawyer instead of a mediator. My problem is pretty serious. What do you think?

Lawyer or Mediator: What’s the Difference?

Lawyers litigate. Your lawyer can only represent you. That means your partner will need a lawyer if you get a lawyer. Things get expensive fast when you have two people charging $400/hour. Taking your action into court will cost YOU around $50,000 at a minimum. (125 Hours. That’s only 2 1/2 weeks!)

Mediators sit down with all the parties and try to find common ground. Mediators charge around $400/hr. and typically have minimums of 6-8 hours per day or a total minimum case cost of $10,000. (Note: I charge considerably less and have no minimums.)

It sounds like mediation is the way to go, right? Maybe not.

What’s Your Desired Outcome from your Partnership Dispute?

This is the most important factor to decide whether you need a lawyer or a mediator.

What does fixing your dispute involve? If you want your partner removed from the business because she violated her fiduciary responsibility and harmed the firm, you’ll need a lawyer. Any time you ‘require’ action against your business partner, you’ll probably need a lawyer unless your partner agrees to the punishment. It’s possible. I’ve seen things get so bad that a partner will walk away from a business, but the departing partner is rarely the offender.

 

Lawyer or Mediator for your Partnership problem will depend on the desired resolution.

Chris Reich can help you with professional mediation.

Other Situations Where You’ll Need a Lawyer

Your partner may be embezzling from the company. That can be a criminal act and you may need a lawyer to help you get enough attention that the local jurisdiction will prosecute. (Don’t hold your breath) You’ll probably have to sue for damages. A lawyer is needed.

If your partner is filing false tax documents, you will want a lawyer to protect you when the walls cave in. Any time a partner is willfully breaking the law, you had better speak with a qualified business attorney.

What if You Want Out of a Business Partnership?

A good mediator can negotiate a buyout. I also advise clients on the terms of a buyout if the other party is merely belligerent. I can mediate the buyout on behalf of the business or I can work as your representative or adviser to obtain a fair buyout.

If your Partnership Agreeement sets terms for a voluntary exit from the partnership but your partner refuses to honor the agreement, you’ll need a lawyer to enforce that.

Sometimes I Work with the Client’s Lawyer

There are cases where I work with the lawyers involved as an intermediary, a go-between, to facilitate reaching an agreement without going to court.

Get Advice First

I have two goals with every new client. #1, provide help. #2, be prudent with my client’s money. If you call me about your partnership problem and I think you should call a lawyer, I’ll tell you. That’s why I always give a free consultation to every new potential client. I can determine if you would be better served by calling an attorney. I don’t mind at all.

Also, there are times when I recommend that we first take a stab at trying to fix things before calling an attorney. Just don’t wait to act. Bad business partnerships get worse with time. Don’t wait to call.

Best wishes for your success,

Chris Reich, Business Mediator

Did You Like This Post? Would You Please Rate It?

Click on a star to rate it!

Average rating 4.7 / 5. Vote count: 33

No votes so far! Be the first to rate this post.

4.7
(33)

“If you have a business partnership that is going sour, get qualified advice. These things get worse with time, not better.”

Do you like FREE services? Contact me now for a 100% confidential and 100% FREE consultation.

Prefer a direct approach?

Email: [email protected]

Phone: (530) 467-5690

Take the proper steps to protect the money you invest to start your new business partnership.

Don’t Risk the Money You Put Into Your Partnership

Somebody puts up money with someone who agrees to contribute labor as their contribution to an equal Partnership. Once things are set up, and a lot of money is spent, the other Partner fails to perform, and the troubles begin. I get 2-3 calls like this every week.

Your partner may take money from the business whenever they wish to do so. A Partnership Agreement could protect you.

Your Business Partner Keeps Taking Money from the Bank Account

Partners take advantage of partners every day and they get away with it. It is the most painful call I get. It sounds like this, “I put all the money I had into starting our business. My partner had bad credit and no money, but he promised to do all the work to get the business going.

Partner Kills Partner in Family Pizza Business

Terrible Tension In Family Business Partnership

In family businesses, when things break down, they really break down. The stress level is much higher than when a typical partnership has issues.

There is a right way to get out of an LLC- or to remove a member

How to Get Out of a Partnership LLC

While it seems like it should be very easy to get out of an LLC, it can be complicated. Even if the business is very small, there are considerations beyond getting your money back. In this post, I’ll try to hit the important points of getting out of an LLC Partnership. These same items apply if you want to remove a member from your LLC too.

Summary
Do You Need a Lawyer or a Mediator for Your Partnership Problem?
Article Name
Do You Need a Lawyer or a Mediator for Your Partnership Problem?
Description
Lawyers litigate. Your lawyer can only represent you. That means your partner will need a lawyer if you get a lawyer. Mediators sit down with all the parties and try to find common ground. Any time you ‘require’ action against your business partner, you’ll probably need a lawyer unless your partner agrees to the punishment. It’s possible.
Author
Publisher
TeachU.com
https://teachu.com/wp/wp-content/uploads/TeachU-siteicon.jpg