Getting Through a Partner Dispute in Your Business

 Posted on July 31, 2025 in Business Law

The fate of a business can be jeopardized by a dispute between two partners. If you have reached an impasse with a business partner that you cannot resolve on your own, it may be time to seek legal representation. By working with a skilled Comal County, TX business law attorney, you can protect your interests and do what is best for your business.

When you work with Geoff Mayfield, Attorney at Law, you will benefit from our firm’s vast breadth of experience and legal knowledge. We can provide you with aggressive representation and counsel for different partnership disputes, advising you of your best course of action. We will consider all possible avenues to resolve the dispute amicably, and if needed, we are willing to advocate for you in a trial.

Addressing Breaches of Fiduciary Duty by a Business Partner

Business partners are bound by a fiduciary duty – meaning that they must make decisions in the best interest of the business. If your business partner fails to honor this duty, you may have to take legal action to rectify the situation. Common breaches of fiduciary include:

• Embezzling company funds for personal gain

• Disclosing trade secrets to competitors

• Showing a clear conflict of interest in objective business matters

• Grossly mismanaging business assets

• Insider trading

To prove that your business partner committed a breach of fiduciary duty, you must prove three things. First, that your partner had an established fiduciary duty to the business. Second, that the business partner violated that duty. Third, that the partner’s violation of his or her duty led to damages. Geoff Mayfield, Attorney at Law can help you pursue a proper remedy for this breach of duty, including compensation or injunctive relief.

Handling Disputes About the Direction of Your Business

Not all partnership disputes revolve around allegations of wrongdoing. Sometimes, partners simply cannot see eye-to-eye on a given issue, leading to arguments about how the business should be run. For example, your partner might want to make an aggressive acquisition to help your business grow, while you would prefer a more conservative strategy.

If all attempts at informal negotiation have failed, you could benefit from the services of a savvy business law attorney. Our firm can step in the middle of a dispute to help you and your partner find common ground, pursuing a resolution that does not interrupt your daily operations. With our assistance, you may be able to reach a point of compromise that preserves your strong business relationship.

Mediation for Disagreements Between Business Partners

If you need to resolve a business dispute, you have plenty of options to choose from. Litigation can provide you with a definitive ruling, but it can also unnecessarily escalate the situation. For a more flexible approach, you could consider mediation.

In mediation, you and your business partner can sit down to discuss the issue at hand, with the aim of reaching a settlement or compromise. During this meeting, a certified mediator will help steer the discussion. The mediator can also propose solutions that leave both parties satisfied.

Mediation may be your best option if you want to continue working together with a partner. This approach also tends to be more cost-efficient for resolving disputes compared to going to trial.

Settling Business Disputes Via Arbitration

If mediation is not to your liking, you and your business partner could try arbitration instead. As opposed to mediation, arbitration allows you to get a swift, legally binding decision for your dispute. You might favor arbitration if you do not want the publicity of a public trial, but still need a quick resolution.

When you and your business partner go to arbitration, you will both have the chance to state your case to the arbitrator. Much like a trial, you can present evidence and witnesses, and you can be represented by a lawyer. An arbitration can award different remedies in a dispute, such as ordering one party to pay monetary damages. Attorney Geoff Mayfield can advocate for you in arbitration and speak on your behalf.

When Is Litigation Necessary to Handle a Partner Dispute?

After all other attempts at dispute resolution have failed, litigation may be necessary. Litigation can be used to resolve all manner of legal issues, ranging from business divorces to alleged breaches of contract.  

If your case goes to trial, it is critical that you work with a knowledgeable lawyer. Attorney Geoff Mayfield has over 15 years of legal experience, and across his career, he has personally represented many small business owners facing legal problems. We will argue aggressively for a favorable verdict, fighting to protect your best interests.

Contact a San Antonio, TX Business Litigation Attorney

A minor disagreement between business partners can escalate into a prolonged legal battle. No matter what is at stake for you, Geoff Mayfield, Attorney at Law is ready to stand up for your rights. We will pursue the most practical solution to your partner dispute, whether that means settling outside of court or pursuing litigation. Contact our Comal County, TX business lawyer at 210-535-0870 to set up a free consultation.