Business Entity Ownership Disputes

Ownership disputes often arise when business partners or business associates decide that they no longer wish to work together. Usually, a contract between the parties sets forth the right to ownership that each partner or associates has, but disputes may nevertheless arise. Some of the most frequent disputes revolve around customer lists, the limitation in competition, and the ownership of entity assets. In such instances, the lawyer’s function is to help resolve these questions between individuals before the dispute turns into a costly and complex court battle. For that reason, it is important that the attorney have good negotiation skills and an understanding of the structure of the contract so that a fair and reasonable resolution can be achieved between the disputing parties.

Although a contract may limit competition between previous business associates, such limitation may not overreach. Although the law generally allows great latitude in business and contractual agreements between parties, it balances those rights against an individual’s fundamental right to earn a living. To that end, the law has put-in-place various limitations regarding the length of time; size of territory; ownership/restriction upon use of customer lists; and type of professional limitations sought to be enforced. Often these types of problems involve very emotional reactions and thus the attorney must be able to understand and deal with such emotions while at the same time keeping the parties focused upon achieving resolution.

Kalom Law Firm, PLLC stands ready to discuss your entity ownership issues. Contact us.

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