While many partnerships in business start off with the best of intentions, sometimes the relationship sours. If one partner decides to be done with the business before the other, the partner who is left in the business might be curious is they have grounds to sue for abandonment.
In general, a business partner has the right to leave a partnership whenever they choose. When they do so, a business dissolution will be triggered.
However, there are a number of reasons why a business partner can be sued for abandonment.
Are you wondering how to sue a business partner or the answer to the question “can I sue my business partner for abandonment?” Let’s take a look at what you need to know.
Can I Sue My Business Partner For Abandonment?
As stated above, in many instances it is perfectly within the right of your business partner to leave the partnership.
You might have grounds to sue them, though, if:
- Their decision to leave is in breach of the partnership agreement you had
- The partner either inadvertently or intentionally acted against the best interests of the business for their own gain
Business partners also have fiduciary duties and other legal obligations to their partners and the business. These include the duty of care, the duty of loyalty, and the duty of good faith.
While the partner is still a member of the partnership, they have to continue to honor their fiduciary duties.
It is not uncommon for a business partner to stop fully engaging with the business when they have decided to leave but haven’t yet absolved their duties to the partnership. If the departing partner breaches their fiduciary duties during this time, the remaining partner might have grounds to sue them.
Common Reasons to Sue Your Business Partner
There are a number of times when one partner might find it necessary to bring a lawsuit against their business partner. Some of the common reasons someone might sue their partner include:
- Your business partner engaged in either theft or fraud
- Your business partner violated the terms of a contractual agreement you have
- Your business partner breached his fiduciary duty
- Your business partner violated your intellectual property rights
In the case of abandonment, you could sue your business partner if their departure is a breach of the partnership agreement you had. For example, if your agreement stated a set duration for the partnership and they left before the terms stated, it is possible to sue for abandonment.
Are You Looking For an Experienced Contract Dispute Lawyer?
There is nothing more unpleasant than a relationship that was once optimistic turning sour and litigious. That being said, if your business partner has breached a contract with you or otherwise provided grounds for you to sue for abandonment, it’s within your rights to do so.
Are you looking for an experienced contract dispute lawyer? If so, contact us today to speak with a knowledgeable attorney.