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Why would you ever sue your business partner?

On Behalf of | Jul 27, 2021 | Business Law

Usually, when you go into business with someone, the goal is to make your business thrive. The last thing you’d want to do is to have internal squabbles or to end up having to sue your business partner.

Still, there are times when suing your business partner may be the right path forward. If their conduct has been harmful to your business, then you may be able to pursue a claim against them for those actions.

Reasons to sue a business partner

Interestingly, there are a few reasons why you may want to sue your business partner. For example, if your business partner has abandoned you and the company, you may want to sue them for abandonment and to make sure your partner faces legal consequences for exiting without the proper legal procedures being completed.

Another reason to sue your business partner could be if they commit fraud or another white-collar crime. Suing them may help you get compensated and to be able to cover losses that the business has suffered as a result of their actions.

Sometimes, you could consider suing for negligence. For example, operating in a way that harms the business, such as by sharing secrets about the business with others, could be a violation of your contract even if it was unintentional. That kind of negligence could be something to sue over if you can’t work out a solution on your own.

Is it worth suing a business partner, or should you try to resolve your issues another way?

If your business partner has committed fraud or damaged your business by helping the competition, suing might be the only way to get compensated. For example, if they have stolen money from the business, suing would give you a pathway to getting that money back.

However, it is also reasonable to look into other options, such as settling a dispute outside of court, when you want to continue the business relationship or to resolve it without as much media coverage as a court case could have. This is something to consider as you decide if you want to sue your business partner for their actions.