Partnership Dispute Lawyers

The Partnership Act 1890 applies by default. Under section 24, partners share profits equally regardless of what each contributed, and every partner may take part in management. Under section 26, a partnership with no fixed term can be dissolved by any partner giving notice at any time. These default rules help some partners and disadvantage others, so establishing which position you occupy should be the first step in any dispute.

Only where an express power of expulsion exists. Section 25 of the Partnership Act 1890 provides that no majority of partners can expel another partner unless the partnership agreement confers that power, and any expulsion must follow the agreed procedure exactly and be exercised in good faith. An expulsion carried out without that power, or in breach of it, gives the expelled partner a claim. We advise on both exercising and challenging expulsion.

Yes. Partners owe one another duties of the utmost good faith. This includes rendering true accounts and full information on partnership matters, accounting for any private profit made from the partnership name or business connection, and not competing with the firm. A partner who diverts clients, opportunities or money can be required to account for the profit made. These duties apply whether or not anything is in writing.

Where the agreement contains a valuation mechanism, that mechanism governs. Where it does not, the share is determined by reference to the partnership accounts, the value of goodwill, and the assets and liabilities at the date of departure. Valuation is frequently the central battleground in partnership disputes, and we work with independent accountants and valuers so that the figure advanced on your behalf is supported by evidence.

Attorney is the American term. In England and Wales, business partnership lawyers are either solicitors or barristers. Pinpoint Lawyers is barrister led, which means the person who would argue your case in court is the person advising you from day one, at fixed fees around 30% below a standard law firm.

The standard limitation period for claims founded on breach of an agreement is six years from the date of the breach (under the Limitation Act 1980). Claims for an account between partners are generally subject to the same period following dissolution. Limitation can be affected by concealment, fraud or mistake. It is critical to seek legal advice promptly, because once a claim is out of time it cannot be pursued regardless of its merit.

Not necessarily. The outcome depends on the remedy sought. Many disputes conclude with one partner acquiring the interest of another, allowing the business to continue. Dissolution and winding up remain available where the relationship has broken down entirely, but they are remedies of last resort. We advise on the route that best serves the outcome you actually want, whether that is a clean exit, a buyout or the continuation of the firm.