Pompano Beach Partnership Dispute Attorney
When a co-owner in a Pompano Beach company stops sharing information, starts paying himself first, or simply refuses to agree on anything, the business can freeze while the damage keeps compounding. The Andrew M. Schwartz Legal Team handles business and real estate litigation for owners in Pompano Beach and across Broward County and Palm Beach County, and a Pompano Beach partnership dispute attorney from our firm can help you decide whether to repair the relationship, buy out the other side, or end the business in court.
Partnership disputes rarely begin with a lawsuit. They begin with a missed distribution, an unexplained transfer, a partner who signs contracts without telling anyone, or a deadlock between two equal owners over a decision neither will give up. What you do in the first weeks, including what you say in writing, which records you secure, and whether you ask a court for emergency relief, often shapes the options you have later. Broward County is also home to a dedicated complex business division in the Seventeenth Judicial Circuit, which matters when the dispute involves dissolution of an entity or substantial commercial stakes.
The right path depends on the type of entity, what the written agreements say, and what your partner has actually done. A general partnership, an LLC, and a corporation each carry different remedies, and the decisions that follow (negotiate, mediate, sue, or seek a sale of the business) look very different depending on which one you own.
Why Choose the Andrew M. Schwartz Legal Team for a Partnership Dispute
The Andrew M. Schwartz Legal Team represents business owners, investors, and families in South Florida’s most difficult business and real estate disputes, serving Pompano Beach, Fort Lauderdale, Boca Raton, West Palm Beach, and the rest of Broward and Palm Beach Counties. Business divorce is central to the firm’s work: deadlocked management, buyouts, valuation fights, breaches of operating and shareholder agreements, breach of fiduciary duty, and judicial dissolution. We also represent clients from New York, New Jersey, and Connecticut who hold business or real estate interests in South Florida and handle the local court appearances so they do not have to travel for every hearing.
Andrew M. Schwartz, the firm’s founder, has spent 37 years in litigation and has practiced in Florida since being admitted to The Florida Bar in 1989. He earned his undergraduate degree from Emory University in 1986 and his law degree from the University of Miami in 1989. Senior Counsel Sundeep Nath, a Northwestern-trained litigator, brings years of experience in business and real estate cases in both state and federal courts, which matters when a partnership dispute crosses into federal jurisdiction. The firm practices as a true legal team, so everyone working on your matter knows the file, and we keep a strict 24 hour return call policy when we are in court and cannot answer right away.
Results in contested business and real estate cases are the best evidence of how a firm tries them. In a recent matter, after a 5-day bench trial in Broward County Circuit Court, the court issued a 32-page final judgment awarding our client specific performance of a commercial real estate contract. We also take a measured view of cost. Clients often arrive wanting the most aggressive lawyer available, and what most of them need is someone who acts as the situation requires and uses finesse when finesse will do. Our attorneys are experienced in mediation and arbitration as well as courtroom litigation, and we look for the resolution that fits your goals and budget rather than stretching a case out for its own sake.
Types of Partnership Disputes We Handle for Pompano Beach Owners
- Deadlocked Ownership: Two equal owners, or two blocs of owners, cannot agree on a sale, a major contract, a hire, or whether to keep operating. Florida’s LLC statute treats an unbreakable deadlock that threatens irreparable injury to the company as a ground for judicial dissolution, and some operating agreements contain their own deadlock sale mechanism that may control instead.
- Diverted or Missing Company Funds: A partner moves money into personal accounts, commingles business and personal funds, or cannot explain where distributions went. Claims can include an accounting, breach of fiduciary duty, conversion, and recovery of the funds, with emergency injunctive relief where assets are at risk of being spent or moved.
- Minority Owner Freeze-Outs: A controlling owner cuts a minority member out of information, decision-making, or distributions. Remedies depend on the entity type and the governing documents, and can include a forced buyout at fair value in certain corporate proceedings.
- Breach of Operating or Shareholder Agreements: A partner violates a buyout provision, non-compete, approval requirement, or capital call obligation. These cases often turn on the exact wording of the agreement and the parties’ course of dealing.
- Valuation and Buyout Disputes: Owners agree someone should leave but cannot agree on what the interest is worth, how it is paid, or over what period. Fair value in a court-supervised buyout is a contested question, not a formula.
- Family and Friend Co-Ownership: Siblings who inherited a business, parents and children with competing visions, or longtime friends who never papered the deal. These disputes carry personal weight and call for discretion alongside firm protection of your financial position.
- Co-Owned Real Estate Between Partners: A building, development parcel, or investment property held jointly by former partners may need a partition action, which asks the court to divide the property or order its sale, or a quiet title action to resolve competing claims.
- Unpapered Partnerships: Handshake deals and informal arrangements raise threshold questions about whether a partnership existed at all, what the terms were, and which limitations period applies to an oral agreement.
What to Do Right Now If Your Business Partner Has Become the Problem
Start by securing information while you still have lawful access to it. Gather the operating agreement or shareholder agreement and every amendment, tax returns, bank and credit card statements, accounting software exports, loan documents, leases, and the key emails and texts between you and your partner. Do not log into accounts you are not authorized to use or take originals from the business premises, because overreaching on your side can hand the other owner a counterclaim. If you are a member or shareholder with statutory inspection rights, a written, dated request for the books and records creates a clear paper trail and often reveals how your partner will respond.
Next, watch the clock. In Florida, a claim founded on a written agreement generally carries a five-year limitations period, while a claim on an oral or implied agreement carries four years. Fraud claims run four years from discovery, with an outer limit of twelve years. A claim seeking specific performance carries a one-year period, which surprises owners who assume they have years to act. Because different claims in the same dispute can have different deadlines, waiting to see whether things improve can quietly extinguish part of your case.
Read your agreement for what it says about getting out. Many operating agreements contain mandatory mediation or arbitration clauses, buy-sell triggers, valuation formulas, and deadlock sale provisions. A deadlock sale provision that has been properly initiated can displace a court-ordered dissolution under the LLC statute, so the order in which you take steps can matter. Equally important, avoid unilateral moves such as locking your partner out, redirecting customer payments, or draining accounts. Those actions can convert a good position into a breach of fiduciary duty claim against you.
Where the dispute is urgent, a court can act before the case is decided. In dissolution proceedings, Florida courts may appoint a receiver or custodian after a hearing with notice to the parties, and corporate dissolution proceedings allow injunctions and other orders to preserve company assets. If money is leaving the company now, speak with counsel about emergency relief before more of it is gone. Cases involving an LLC or corporation in Pompano Beach are filed in the circuit court for Broward County, which sits within the Seventeenth Judicial Circuit and hears disputes above the county court threshold. If a dispute involves substantial business litigation or dissolution of certain entities, the Seventeenth Circuit’s complex business division may be an option through the direct-filing procedure in its administrative orders. Federal claims or diversity cases may proceed in the Southern District of Florida, which holds court in Fort Lauderdale.
How Florida Law Treats Dissolution, Buyouts, and Court-Ordered Exits
When owners cannot continue together, Florida law offers several routes beyond a simple lawsuit for damages. For LLCs, a member or manager can ask the circuit court to dissolve the company on specific grounds: that substantially all of the company’s activities are conducted unlawfully, that it is not reasonably practicable to carry on the business under the articles and operating agreement, that controlling members or managers have acted or are expected to act illegally or fraudulently, that assets are being misappropriated or wasted to the company’s injury, or that owners are deadlocked and irreparable injury is threatened or occurring. Upon a sufficient showing, the court can appoint a receiver or custodian, or order the company or other members to purchase the petitioner’s interest.
Corporations follow a parallel but distinct framework. A shareholder may petition for judicial dissolution on statutory grounds, including where a corporation has abandoned its business and failed within a reasonable time to liquidate and dissolve. Once certain dissolution proceedings begin, the corporation must notify the other shareholders within 30 days that they can avoid dissolution by electing to purchase the petitioner’s shares at fair value. If the parties agree on fair value and terms within 60 days after the first election is filed, the court enters an order directing the purchase on those terms. An election to purchase is irrevocable unless the court finds it equitable to set it aside or modify it, so a decision to elect should be made with a realistic sense of valuation, not as a reflex.
The practical point is leverage. Dissolution petitions and buyout elections change the economics of a dispute, because the party who wants to keep the business must often come up with fair value for the departing owner’s stake. That is why valuation, documentation, and timing matter so much, and why a good partnership dispute strategy considers what outcome you actually want: staying in, getting bought out, buying the other side out, or winding the company down on fair terms.
When the business owns real property, or the partners hold real estate together outside the company, additional tools come into play. Florida partition actions are brought in chancery, and where the property cannot fairly be divided, the court may order a sale and divide the proceeds among the owners according to their interests. Heirs property gets special treatment under a separate statutory framework, which matters when family members inherited an interest together. Title disputes can be resolved through a quiet title action filed in any county where part of the land is located.
Frequently Asked Questions About Partnership Disputes in Pompano Beach
What counts as a partnership dispute?
It is any conflict among co-owners of a business over control, money, performance, or the future of the company. The owners may be general partners, LLC members, or corporate shareholders, and the dispute may involve deadlock, a breach of the governing agreement, misuse of company funds, or a breakdown in the relationship that makes continuing impractical.
Can I force my partner out of the business?
It depends on the governing documents and your partner’s conduct. Many operating and shareholder agreements include buyout, expulsion, or dissociation provisions. Florida law also provides court remedies, including dissolution and court-ordered purchase of an interest, where the statutory grounds are met. A review of your agreement is the starting point.
What can I do if my partner is taking money from the company?
Depending on the facts, you may have claims for an accounting, breach of fiduciary duty, conversion, and recovery of the funds. Where assets are at risk, a court may order injunctive relief to stop them from being moved or spent while the case is pending. Preserve the bank records and any transaction history you have lawful access to.
How long do I have to file a lawsuit?
Florida generally gives five years for claims founded on a written instrument and four years for oral or implied contracts. Fraud claims run four years from discovery, subject to a twelve-year cap. A suit for specific performance has a one-year period. Because several of these can apply in one dispute, treat the shortest deadline as the real one.
Does my dispute have to go to court?
No. Many partnership disputes resolve through negotiation, mediation, or arbitration, and some agreements require one of those steps before suing. Our attorneys are experienced in alternative dispute resolution as well as courtroom litigation and pursue the route most likely to meet your goals efficiently.
What if we never signed a written partnership agreement?
You can still have enforceable rights. Courts look at how the owners actually dealt with each other, including who contributed capital, who shared profits and decision-making, and what they told third parties. An oral or implied agreement carries a four-year limitations period rather than five, which makes prompt action more important.
My partner and I are deadlocked 50-50. Who decides?
Your agreement may supply a tiebreaker, a mediator, or a buy-sell or deadlock sale mechanism. If it does not, an LLC member can ask the court to dissolve the company where deadlock cannot be broken and irreparable injury is threatened or occurring, or the court may consider appointing a receiver or ordering a buyout. Which route fits depends on the entity and the facts.
Can a court appoint someone to run the business while we fight?
In dissolution proceedings, a court may appoint a receiver or custodian after a hearing with notice to the parties, and in corporate dissolution cases it may issue injunctions and take other steps to preserve assets until a full hearing. These are not routine remedies, and the court expects a real showing of need.
Should I stop paying my share of expenses or stop working until this is resolved?
Be careful. Withholding contributions or walking away from your role can breach your agreement or your fiduciary duties and give the other side a counterclaim. Talk to counsel before changing how you participate, so any protective step is documented and defensible.
I live in New York or New Jersey. Can I handle this from out of state?
Often, yes. We represent owners from New York, New Jersey, and Connecticut with South Florida business and real estate interests, appear in the Florida courts on your behalf, and arrange scheduled conference calls at times that work for everyone, so you do not need to travel for each hearing.
Is it worth hiring a lawyer if the amount at stake is modest?
It can be, particularly early. A single review of the agreement and a measured demand letter sometimes resolves a dispute before it becomes a case. Smaller claims may also fit in county court rather than circuit court, which can change the cost and pace. We aim for a resolution that makes economic sense relative to what is at stake.
Serving Partnership Dispute Clients Across Pompano Beach and South Florida
We represent business owners in Pompano Beach and throughout Broward County, including Fort Lauderdale, Lauderdale-by-the-Sea, Lighthouse Point, Deerfield Beach, Coconut Creek, Coral Springs, Parkland, Margate, Tamarac, Sunrise, Plantation, Davie, Hollywood, and Hallandale Beach. Our work reaches north into Palm Beach County as well, serving owners in Boca Raton, Delray Beach, Boynton Beach, Wellington, West Palm Beach, and Palm Beach Gardens. Whether the company operates out of a Pompano warehouse district, a marina-related business, a medical or professional office, a restaurant, or an investment property held by several partners, we handle the dispute in the court that has jurisdiction over it.
We also regularly work with owners who live elsewhere, including clients from New York, New Jersey, and Connecticut whose partners or co-owned property are in South Florida, and with other attorneys who refer clients with Florida disputes. Cases are heard in the Seventeenth Judicial Circuit in Broward County or the Fifteenth Judicial Circuit in Palm Beach County, and in federal court in the Southern District of Florida where appropriate.
Speak With a Pompano Beach Partnership Dispute Lawyer Before the Dispute Costs More
If a partner’s conduct is putting your company, your investment, or your property at risk, early advice can preserve options that disappear with time. A Pompano Beach partnership dispute lawyer at the Andrew M. Schwartz Legal Team can review your agreements, explain which remedies fit your entity and your facts, and help you decide whether to negotiate, mediate, or ask a court to step in. Call us to schedule a consultation and talk through your situation.