Can You Sue Your Business Partner?

We can all agree that no one wants to have to take legal action against their business partner. At the start of a business partnership everything is exciting and hopeful, one could never expect a business relationship to turn sour in the future or imagine any disputes down the line. But these things do happen and sometimes taking legal action is the only option. More so, if one’s business partner is acting in a way that results in damages and harm to the business.

When to Sue Your Business Partner

At the formation of a business partnership with someone, both parties hope that both will work together and make their business successful. Unfortunately, that may not always be the case and some circumstances arise in which one could have a legal claim against their business partner, according to Business Lawyers & Corporate Lawyers.


Judge Dan Hinde

Some grounds for a lawsuit against one’s business partner are:

  • Theft or embezzlement. If one’s business partner has engaged in fraud or committed theft, or if they have stolen money or property from the company, one can file a claim against them by hiring a Business Law Attorney.
  • Breach of fiduciary duty. If a business partner does not act in the best interest of the business and rather his own, they are breaching their fiduciary duty.
  • Breach of contract. Business partners could have various types of contract agreements aside from the partnership agreement, such as non-disclosure or non-compete agreements. If any of the contracts are breached, one can sue their business partner for damages.
  • Violation of intellectual property rights. A business/ company can own copyright, trademark, or a patent. If one of the business partners decided to use such intellectual property for their own personal use without authorization of the company, these are grounds for a lawsuit.

Alternatives to Litigation Against Business Partner

Taking legal action against one’s business partner and taking the dispute to litigation can be very difficult on both parties and their business/company. Not only could it be financially difficult, but it could make harder for the business partners to continue working together. Also, the lawsuit could have a major impact on their business/company’s brand, reputation, and financials.

Some alternatives to litigation to consider are mediation or arbitration. These options could lead to better outcomes than litigation, and it can be done so in private and at a lower cost.



An attorney can always assist in business disputes between business partners and help guide them through the various types of options there are. Call a business litigation attorney today to help take the first steps.

Popular Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending Articles

Find a Lawyer   /   Ask a Question   /   Articles   /   About    Contact  

© Copyright 2022 | Attorney at Law Magazine | Privacy Policy