Partnerships are very common business entities throughout the state of New York. They vary significantly in size and scope, ranging from small family partnership businesses to large enterprises that combine the assets and business knowledge of multiple entrepreneurs. Additionally, partnerships exist in every industry available. And while they all have different aspects of their industry to deal with, they all also have one thing in common. Managing partners are going to disagree from time to time, and often about very serious business matters that could impact the long-term growth of the company. It is always best to have a dispute resolution process understood by the partners beforehand, but this is not always the case.
Alternative dispute resolutions
When partners cannot come to an agreement on any particular differences, one step that can be used is employing a mediator to evaluate the positions of each partner and offer a solution. Retaining a legal professional is not always necessary, as a third party can be an individual that all partners respect and will listen to their personal assessment of the problem. While this may not produce an agreement, it can at least set a better baseline for further negotiations.
Opting for mediation
When all else fails in a partnership dispute, mediation is indeed possible. However, it also means that partners could be entering into a formal agreement after the end of the session. While mediation is still an informal business law procedure, the outcome will be a formal agreement in many cases. The best element of mediation is that all negotiation discussions are private, and an in-depth agreement can often be negotiated. This can also help reset a business in some cases as well.
The most effective dispute resolution for partnerships is assuredly when problems can be worked out within the company without outside help. But there are alternatives when internal agreements or modifications cannot be reached.
