(727) 785-5100


What Are the Most Common Causes of Partnership Disputes?

Written on March 12, 2020

Even when you run a highly successful Florida business, it’s inevitable that stakeholders will become embroiled in partnership disputes at some point during the company lifecycle. When you’re unable to resolve them, disagreements could lead to missed business opportunities, low profits, decreased job satisfaction, and many other consequences. Unfortunately, a recent article in The Balance for Small Business also reveals that partnership disputes are among the top reasons US businesses shut their doors.

As such, though you should expect to encounter disagreements, you cannot let them disrupt your business to the point of failure. You can rely on a Clearwater, FL partnership disputes attorney to implement strategies to reduce the potential, and for assistance in reaching compromise. However, you should also understand the most common causes of partnership disputes, so you’re in a better position to avoid them.

  1. Financial Rights and Responsibilities: Conflicts over each stakeholder’s duties and rights are common when a company is going through tough financial times, since they generally center on disagreements about money. One individual may accuse another of not doing enough to support the organization, or there may be disputes over liabilities and profit distribution. A solid partnership agreement can resolve many of these issues.
  1. Breach of Fiduciary Duty: All partners are obligated to act in the best interests of the company, to the exclusion of other entities and their own personal interests. When one diverts opportunities away from the business, misappropriates funds, or otherwise harms the organization, a partnership dispute may arise over breach of fiduciary duty.
  1. Insufficient Descriptions of Roles in the Company: Partners may share in the vision of success for a business, but they may not do enough to delineate who does what to achieve these goals. When there are no clearly established roles, essential tasks may not be completed – or a stakeholder will cross boundaries of another in an attempt to complete projects. No one is accountable when positions aren’t specific, leading to partnership disputes.
  1. Application of Company Resources: Partners often believe they have the company’s best interests in mind, so they’ll have strong opinions on where to allocate resources. Unfortunately, these ideas may clash, leading to intense disagreements about where to invest company funds. The best way to avoid these partnership disputes from turning into major business disruptions is to employ a mechanism for resolving differences of opinion. A partnership agreement can include provisions on allocation of company resources, such as by requiring a two-thirds vote to approve certain expenditures.

A Clearwater, FL Partnership Disputes Lawyer Can Assist with Resolving Differences

When you have a skilled attorney to advise you on internal disagreements, it may be possible to avoid costly litigation that disrupts your company and puts your interests in jeopardy. Our team at  Clearwater Business Law focuses on a range of matters affecting Pinellas County business owners, including partnership disputes. We’re experienced in working with stakeholders who can’t see eye-to-eye, but we can also employ structures to help prevent conflict. To learn more about our legal services, please call (727) 785-5100 to set up a consultation.



I strongly endorse Andrew Mongelluzzi. He is a very skilled and able business attorney focused on customer service and results. On the front end, Andrew deftly advises new businesses on organizing properly, acquiring necessary licenses, contracting with vendors & customers, and dealing with various compliance issues that may arise. On the back end when things go south, Andrew counsels and navigates businesses through complex commercial disputes and aggressively represents them in negotiations, mediation, arbitration, and in litigation so that businesses can legally move on and get back to business. Andrew’s ability to identify legal issues and approaches to resolve business-related issues is a strength that I have learned from and professionally relied upon in approaching the business matters and cases that I handle. I regularly refer business to Andrew knowing that he will diligently represent his business clients and their best interests.
Relationship: worked together on matter

- Frank N. Genco, Florida Bar No. 440086

Attorney Mongelluzzi and his team provided excellent and quality service. I always felt that my needs were met and that the firm was invested in me and my case. The quality services I received at Mongelluzzi’s firm were remarkable. From the initial meeting they were responsive to my calls, questions and concerns. All issues were handled professionally and timely, easily accessible, got back to me quickly, aggressive and got me the results that I wanted. Attorney Mongelluzzi and his staff all gave my case their personal attention and provided the quality of work that anyone would want when hiring an attorney.

- Client

Andrew is very thorough defining the outcome expectations. In my case, it was setting up a new corporate entity. He advised me on the most beneficial option and he then executed on that path. Andrew is a very pleasant person to work with. He is determined, skilled and committed to his client’s success.

- Gil Pinney

Andrew helped me through a difficult situation with American Express and we won the case. A great job by Andrew! He also helped me with T&C’s in my company. I would recommend Andrew highly as an attorney.

- John Sams

As a business owner for 12 years I have seen my fair share of ups and downs. Some of the downs would include landlord/tenant disputes and creditors that may have not been fulfilled to agreement. Andrew has met both of these situations for me in a timely, positive, and affordable manner.

- Rich Mattes

It was very nice to have a lawyer who not only is fierce in negotiations but has been successful in business. This is a lethal combination. I was glad he was on my side.

- Nigel Castanheiro

Andrew helped me with a contract litigation case. The lawyers battled it out for over a year and we finally got a reasonable settlement offer. Then the other side tried to back out. Andrew figured out how to force the other side to honor the deal and really knows his way around the court system. Definitely feel comfortable using him again.

- John Ellis


  • *Contacting Clearwater Business Law or any individual at the firm through this form does not establish an attorney-client relationship. Any time-sensitive or confidential information pertaining to your case should NOT be sent through this form. Thank you.
  • This field is for validation purposes and should be left unchanged.