How to Sue Business Partner

Sometimes, it is very difficult to have a business partner because there can be misunderstandings about running the business. If you would like to sue your business partner because he does not seem to fulfill his jobs well, this article is right for you.

You will learn here the right things to do if you would like to make a legal action.

One of the most common reasons behind taking a legal action in business is breach of fiduciary duty. This is a very serious case on part of the business owners. In the following paragraphs, you will know the meaning of fiduciary duty, breach of fiduciary duty and the legal steps you can take in suing your partner.

Discover How to Sue a Business Partner

Fiduciary duty is defined as a legal relationship between two parties where there is a principal and a fiduciary. The former is the person who will benefit from the fiduciary duty and the latter is the person who needs to fulfill the duty. The following are the examples where this kind of relationship exists: client and stockbroker, senior partner and company, partner in general partnership and partner , limited liability company (LLC) members and manager, client and lawyer and trustee and beneficiary.

No matter what company structure you have, there are fiduciary duties that exist between the partners or members. If you are not sure of the specific duty that is owed by the persons involved, you should refer to the partnership agreement or organizational documents of the company because they stipulate the duties.

Since you are involved in a business partnership, you have many fiduciary duties and they are as follows: duty to operate in fair dealing and good faith, duty to reveal information about the partnership and its dealings and duty to be loyal to your other business partners.

So, how does the breach of fiduciary take place? Actually the answer to that is just very simple. If any of the persons involved in business did not fulfill his duty, he can be charged with breach of contract.

Now, what if you discovered that one of your business partners has breached a fiduciary duty to you? Then you can sue him. But before you do that, you should examine first the kind of breach that has occurred. If one of your partners has hidden the earnings of the company, you can still recover the monetary damages. If the manager has breached the duty, then you can have him removed.

But aside from these actions, you can take another form of action which is the legal action. This means that you have to contact an attorney to sue the one who has breached his duty to you. Since a lawyer knows everything about the laws in business, he will be the one to advise you on what to do and what other steps to take. To make sure that you will be credible in suing a person, you will also be asked to provide evidences and documents that can prove his guilt.


  • Tesh Rai said on August 4, 2017
    Can I sue my Attorney for giving me wrong advice and he acted upon the said advice, as a result I lost about $65.000
  • Michelle said on January 27, 2019
    going through a lawsuit with my ex-partners. They walked out on the business because they were upset about an employee who left. long story, but they literally just walked out and never came back and left my husband and I to continue running the company. They are suing the remainder partners for their share of the business and for the business to be dissolved. We are at the end of the case with a receiver involved and an auction will be taking place to sell off all assets. However, in the process of this case, we found that they were taking money to pay off their personal credit card bills. They claim the purchases were for the gym. They never informed us that were paying their credit cards. The deal, which isn't in writing was that nobody was to pay themselves back with the business money until we paid back the person who lent us over $300,000. there are 5 partners all in which everyone at some point or another used credit cards etc. to purchase something. pay for something for the business. Over the 2 years after looking at the banking and books which was their duty throughout this case, it came to our attention the 2 partners (husband & wife)paid their cards over $107,000. We never agreed to this, whereas the 3 remaining partners also spend thousands on to the company and the evidence shows not one penny was paid back to us. Can I sue them after this case for stealing? Need advise.


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