Litigating Partner, and Shareholder Disputes in Closely Held Corporations or Partnerships
Litigating partner dispute claims in Illinois involves following the legal procedures set out by the Illinois Business Corporation Act (BCA) and the Illinois Uniform Partnership Act (UPA).
If the dispute is between partners in a partnership, the UPA provides the framework for resolving disputes. The UPA provides that partners owe a fiduciary duty to each other, and this duty requires partners to act in good faith, fairly and with loyalty towards one another. If a partner breaches this duty, the other partners may have a claim against the breaching partner for damages and other remedies.
If the dispute is between partners in a corporation, the BCA provides the framework for resolving disputes. The BCA provides that a shareholder of a corporation may bring a derivative claim on behalf of the corporation against a director or officer for breach of fiduciary duty. If the shareholder can show that the director or officer breached their duty and caused harm to the corporation, the court may order damages or other remedies against the director or officer.
In either case, the first step is often for the parties to attempt to resolve the dispute through negotiation or alternative dispute resolution (ADR) methods such as mediation or arbitration. If this is not successful, the next step is to file a lawsuit in the appropriate court. The court will then oversee the litigation process, which may include discovery, motion practice, and ultimately, trial.
It is important to note that litigating partner disputes can be complex and costly, both in terms of time and money. It is often advisable for parties to seek the advice of experienced attorneys who can help navigate the legal process and negotiate a settlement if possible. You can call our Chicago partner dispute lawyers for a free consultation at 630-333-0333.