Business partnerships are often built on trust and years of shared work — which is exactly what makes disputes between owners so difficult when they arise.
Disagreements over management, profit distributions, or the future direction of a company can quickly threaten the business itself if they aren't handled effectively. Van Egmond & Heitlinger helps LLC members, partners, and businesses throughout Modesto and Northern California protect their interests, their investment, and — where possible — the working relationships that built the company.
We represent clients in disputes ranging from disagreements that can still be resolved through negotiation to complex litigation involving alleged fraud or breach of fiduciary duty. Past results in business ownership disputes have included a $7 million recovery of corporate shares in a family business dispute and a $3.3 million buyout settlement for minority business owners in a breach of fiduciary duty matter. Past results do not guarantee future outcomes.
Talk to a partnerMany disputes come down to how a governing document should be interpreted. We review operating agreements, partnership agreements, and bylaws to determine what the document actually requires and where a client's rights and remedies lie.
Members, partners, and managers owe fiduciary duties to the business and to each other. We represent clients pursuing or defending claims involving self-dealing, misappropriation of company funds or opportunities, and breaches of the duties of loyalty and care.
When a partner or member wants to exit — or when remaining owners want to force a buyout — disagreements over valuation and terms are common. We help clients negotiate fair buyouts and, when necessary, litigate valuation and buyout disputes.
When owners with equal control can't agree on a critical decision, the company can grind to a halt. We help clients resolve deadlock situations through negotiated agreements, mediation, or court intervention.
Minority members and partners have legal protections against being frozen out of management, denied access to financial records, or otherwise disadvantaged by majority owners. We represent minority owners enforcing their rights and majority owners defending these claims.
When a partnership or LLC can no longer continue, we help clients navigate dissolution, including the proper winding up of business affairs, distribution of assets, and resolution of outstanding disputes among owners.
When a dispute can't be resolved through negotiation, our attorneys are prepared to litigate LLC and partnership disputes in court — including claims involving breach of contract, breach of fiduciary duty, and fraud.
Document the conduct you've observed and review your operating or partnership agreement before taking action. Certain disputes may require you to follow specific notice or dispute resolution procedures outlined in the agreement itself. An attorney can help you evaluate your options before you communicate with your partner about the issue.
It depends on the operating agreement and the circumstances. While majority owners often have significant authority, minority members have legal protections against being unfairly frozen out, denied financial information, or stripped of their ownership interest without proper process.
Many operating and partnership agreements include dispute resolution clauses requiring mediation or arbitration before litigation can proceed. We review these provisions early in any dispute to determine the correct process and avoid procedural delays.
Valuation methods depend on what the governing agreement specifies. Disputes often arise when the agreement is silent or ambiguous. Common approaches include appraisal by a neutral valuation expert, a formula in the agreement, or negotiation between the parties.
In many cases, yes. We work to minimize disruption to business operations while a dispute is pending, and help clients pursue interim agreements or court orders when necessary to protect the business during litigation.
As early as possible. The sooner an attorney is involved, the more options are available — including preserving the ability to negotiate before positions harden, and ensuring procedural deadlines in your governing documents are not missed.
Call (209) 876-8886 or send us a message. You speak directly with a partner.