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What to do when business partners do not agree

You can form partnerships at any time with two or more individuals, whose goal is to make a profit. In most partnerships, each partner has the right to make decisions that affect the business, unless otherwise specified in the agreement. However, when partners disagree on the running of the business, a partnership dispute can occur. Here are a few tips that can help partners reach a happy medium.

Practice “active” listening – Understand the reasons for the disagreement and what are the concerns you and your other partners have. This will highlight areas of common ground, that can then be used to solve the problem, making everyone feel valued.

Revert to the partnership agreement – Some partnership agreements will discuss disputes, and this is a good place to start to understand how to approach a dispute. It is important that the procedure highlighted here is followed as this will avoid a lawsuit that can occur if the agreement is disregarded.

Consider hiring a mediator – A mediator is a neutral party that will help to facilitate communication between two parties affected by a dispute. The mediator will help parties explain their issues and what solutions they have on the matter. Mediators will also help parties reach an agreeable resolution that will help both parties. The agreeable resolution does not have to follow by law if the partners are not in agreement.

The Primary Difference Between a Mediator and a Lawyer

Both lawyers will look resolve the case. However, they both have their own legal routes.

Written by: Lyle Charles

When it comes to construction cases, there are two routes that you can take when it comes to a claim: hire a lawyer and go through arbitration, or take the mutually beneficial route and use a mediator. Both have their benefits and caveats and this article will discuss each choice in-depth so you can ultimately decide which option is best for you. Be sure that you hire construction consultants that understand the industry as it will be more beneficial for your case.

Hiring a Lawyer

A lawyer, unlike a mediator, is bound to represent a single party – they can’t represent both sides and negotiate. Lawyers can take a “mediation” approach by attempting to negotiate with the opposing party. However, it’s different in the fact that most lawyers that are hired will look to head to the arbitration process and settle within court. It’s important that you understand that a lawyer that specializes in arbitration will not look to mediate at first. Instead, he or she will attempt to take your case straight to court and look to argue against the opposing party in front of the judge. Additionally, he or she may not even be a construction claims expert, which is vital to the outcome of the process.

Hiring a Mediator

A mediator is different than your standard lawyer in that he or she will represent the case rather than the parties. What this means is that the mediator will overlook the entire construction case and determine what resolution will benefit both parties. He or she will then discuss all possible options at a “sit down” with both parties and work to resolve the claim. A mediator can be defined as a neutral party that provides substantial legal information but does not provide any legal advice to anyone. He or she will also not go to court and argue for a party. They are simply there to provide legal insight on how the claim can be resolved without going to court. Remember, taking the claim to court can be a long and arduous process that can end in a stalemate. It takes a significant amount of money to run a construction site and the more time that ticks away, the more money is lost.

In Conclusion

Whatever route you take, always remember that both routes will cost you money. An early resolution to the claim is always the best-case scenario. Be sure that you hire the right candidate to handle your claim as he or she will be tasked with essentially handling your finances. Be sure that you go through all your options before you make your decision – and even seek advice from one of the many construction consulting services out there.