What Should You Consider When Deciding Whether To Sue Your Business Partner In Arizona?

Considering Suing Your Business Partner? Here’s What To Do

Most business partnerships work well the majority of the time, but sometimes disputes arise between small business partners. Although small disputes are normal and can usually be resolved fairly easily, more significant disputes can arise, such as when one partner is engaging in borderline illegal behavior. This can leave the other partner wondering whether to take legal action.

Suing a business partner in Arizona

You may have multiple legal options available in this type of situation, but it’s important to first remain calm and take time to accurately assess the severity of the situation. Then, follow these steps and seek consultation with your Avondale business attorney:

Collect Documentation and Get Organized

All business owners should maintain an organized file of key business agreements, contracts, and records. This is especially important when you are dealing with a dispute. Make sure you have copies of all of your business organizational paperwork, operating agreements, bylaws, and other documentation for when you consult your attorney. This provides key information about your business and may help you find potential solutions.

Make a Demand for Access

If you do not have access to these documents, your attorney can help you make a demand for access. This step alone can result in your business partner seeking legal counsel and working with you to find a resolution.

Draft an Outline

Create an outline of your dispute and desired outcome to help your Chandler business attorney gain a full understanding of the situation. Explain the details, organize important dates and events, and summarize what happened when things went wrong. Having all of this documentation ready will not only help you save on attorneys’ fees and get resolution moving faster but will help your attorney thoroughly understand how the dispute originated. Potential solutions may become apparent, which can be especially beneficial if you still want to continue with your business and partnership.

Arizona may recognize verbal agreements that are not directly addressed in the statute of frauds, but verbal agreements are notoriously difficult to prove, and they can significantly complicate dispute resolution. In many cases, verbal agreements are the cause of disputes, which is why it’s crucial to work with an experienced Gilbert business attorney who can assist with putting business agreements into writing to prevent litigation or disputes in the future.

Consult with your Business Attorney

Filing a lawsuit against a business partner is a serious action that should not be taken lightly. If you are not already represented by an attorney, your first essential step is finding legal representation from an experienced Glendale business attorney. Your attorney will examine the situation, your business documentation, and the situation and work with you to find a potential solution. A calm, experienced perspective from a third party can provide helpful guidance and reasonable alternatives that can be pursued before going to court.

What Alternatives Do I Have to Resolve a Dispute?

Mediation and arbitration are less expensive and sometimes more effective ways to resolve business partner disputes. You and your partner can often arrive at a resolution while maintaining your business relationship and preserving your company. Although you may feel angry and want to sue a business partner who has wronged you or your business, it’s important to remain open to other methods of resolution. Even if you win the case in court, your business may lose profit and employees, face damage to its reputation, incur serious expenses or even be irrevocably destroyed to the point of closing your doors.

When Should I Pursue Court Intervention?

When parties cannot reach an amicable settlement, litigation in court may become the best option. In situations where there are serious concerns about one partner’s potentially illegal behavior that may jeopardize the business, one appropriate step is to hire a third party (sometimes called a receiver) who can operate your business until the lawsuit is resolved. This may not be an ideal situation for everyone, but it can keep the business open while the case is being reviewed.

It’s important to understand that filing a lawsuit against a business partner will be an extremely involved and time-consuming process. Your business partner can help you understand how to prepare for litigation and what will be required of you. Discovery and review of the evidence by all legal counsel, along with depositions and testimony, can eliminate a sense of privacy, take up significant amounts of your time, and be emotionally draining. You’ll need to be prepared to testify in court, possibly more than once, and will want to work with your attorney to make sure that the legal strategy is following your intended objectives from the lawsuit.

Because of the many challenges that can come with suing a business partner and the potential ramifications for your business, it’s essential to work with an experienced legal team who can help you determine whether a lawsuit is the best step and who is prepared to provide representation in court.

Discover Your Options with an Experienced Business Attorney

If you are facing a serious dispute with your business partner, schedule your confidential consultation with Denton Peterson Dunn. We specialize in providing legal guidance to business partners in complicated situations. As your attorneys, we will work with you to carefully review the situation, discuss potential solutions such as mediation, explore how to protect yourself and your assets, and provide representation in court if necessary. Regain peace of mind and take steps toward resolution when you contact us today!


Brad Denton, Business Lawyer
 – Denton Peterson Dunn

1930 N Arboleda #200
Mesa, AZ 85213

Office: 480-660-3249
Email: [email protected]
Website: https://arizonabusinesslawyeraz.com

7272 E Indian School Rd #540-132
Scottsdale, AZ 85251

Phone: 480-690-3283
Email: [email protected]