Partnership Litigation

In our Business Divorce practice, we frequently represent general and limited partners who have claims relating to their ownership interests in closely held companies. Our lawyers have had extensive experience investigating, prosecuting and defending claims for breach of fiduciary duties and other claims in partnership litigation. Therefore, when claims do arise, we litigate aggressively for our clients in state and federal courts and also in arbitration proceedings.  We understand the strategic goals and visions of owners and investors in limited partnerships, and maintain our focus on achieving the client’s specific business objectives.  

The deep and sophisticated understanding our firm has developed of the business and legal issues involved in partnership disputes enables us to position each case for optimal success.  We also develop and implement business solutions for our clients (before and after lawsuits are filed) that help resolve claims on the most cost-effective basis.

Resolution of Partnership Conflicts

The starting point for us in handling partnership disputes is to understand our client’s business, the industry in which it operates, and the details of the disputes between the partners.  The essence of an internal partnership dispute is a conflict between the company’s owners – most often between its general and limited partners. We adopt a constructive approach in these disputes. Our considerable experience enables us to propose and implement creative, win-win solutions for our clients in order to resolve the claims on reasonable business terms.

Methods we use to help to resolve partnership conflicts include:

  • Transparency – we secure business records to obtain financial information
  • Revised structure – we revise partnership agreements to require reporting
  • Dividend policy – we require the partnership to issue regular distributions
  • Buy-Sell – we negotiate buy-sell/redemption rights between the partners

Negotiated Transfers of Partnership Interests

Partners often resolve their internal conflicts with other partners through a buyout of the ownership interests held by one or more partners. We assist our clients in negotiating and structuring the purchase, sale and assignment of their partnership interests (or their interests in other closely held, private companies), and do so in a manner designed to achieve their business goals while protecting them from future liabilities. In the interests of our clients, we also retain and work closely with outside business valuation experts and tax accountants who help to ensure that our clients receive appropriate value for their interests and are provided with the most favorable tax treatment possible in the transaction.

With offices in Houston and Dallas, Diamond McCarthy LLP assists a variety of clients with their Texas Business Divorce matters throughout Texas, including Austin, San Antonio, Midland, Fort Worth, Galveston, Amarillo, Abilene, and Waco.

© 2022 Diamond McCarthy LLP | Disclaimer
2711 N. Haskell Avenue, Suite 3100, Dallas, TX 75204
| Phone: 214-389-5300
909 Fannin Street, 37th Floor, Houston, TX 77010
| Phone: 713-333-5100

Meet the Team | What you Need to Know | Practice Areas | About

Legal Web Development by
Zola Creative

Business Dispute News

The information provided on this site is not legal advice, and is not intended to be legal advice. You should consult an attorney for advice regarding your individual situation. The decision to hire an attorney is an important decision, and should not be based solely on advertising. We welcome your calls, letters and electronic mail, but contacting us does not create an attorney-client relationship. All attorney-client relationships that are formed with our law firm will be documented in a signed, written agreement. Please do not send any confidential information to us until an attorney-client relationship has been established.

Our prior results in other cases do not guarantee a similar outcome in a future case. The results we have obtained for our clients depend on a variety of factors that are unique to each representation and each set of facts.