When you started your Louisiana business, you had high hopes for building and developing an operation that was successful and profitable well into the future. If you started your company alongside a business partner, the two of you together probably put in a significant amount of time and effort into making your plans a reality. A partnership can be a wonderful and effective business tool, but it can also be devastating and disruptive when one partner decides to leave.
If your business partner abandoned your business, what options do you have? Depending on the nature of any agreement the two parties had, it may be possible to take legal action. Losing a business partner can be confusing and overwhelming, but there are steps you can take that will allow you to preserve your business interests and protect your company.
The possibility of a lawsuit
Business partnerships sometimes come to a natural conclusion, and when this happens, there are appropriate ways for the two parties to end the relationship. Simply walking away not only is frustrating for the other partner, it could be a violation of the terms of a partnership agreement. In this situation, it would be appropriate to pursue legal action. If the desertion breaches a contract or the abandoning partner is acting in a way that is intentionally harmful to your business interests for his or her own gain, a lawsuit is a reasonable course of action.
A business partner has the right to leave at any point he or she chooses, but he or she may not breach any fiduciary or contractual duty owed to the other business partner. Fiduciary duties include financial responsibilities, as well as duty of care, duty of loyalty and duty of good faith. As long as the partner remains legally attached to the partnership agreement, it could be a violation of the contract to stop meeting his or her obligations.
The best future for your company
As a Louisiana business owner, you want to ensure that any type of partnership dispute does not harm the long-term health of your company. If there is a matter of desertion or breach of fiduciary duty, you may find that the pursuit of a lawsuit allows you the opportunity to seek appropriate compensation and damages. Through litigation or negotiations, you may be able to secure an outcome that lays the foundation for longevity and success for years to come.