Business Break-Ups Usually Lead to Bad-Blood and Nasty Consequences

This month, the Piccuta Law Group advised two different small business owners both of whom are involved in heated litigation with a former business partner. The first is a local doctor with his own established medical practice. The local doctor entered into an overhead sharing arrangement with another doctor who was attempting to build her own practice. When the other doctor failed to live up to her responsibilities, the established doctor severed the relationship. The established doctor was then sued by the other doctor who alleged he had purposefully interfered with her ability to build a practice and caused her financial harm as a result.

The second matter involved an individual who decided to open a bar with an acquaintance. The two parties entered into a partnership agreement. A provision of the partnership agreement required each partner to make capital contributions when requested.  When one of the partners did not contribute additional capital when requested, the other partner took steps to sever the relationship. The two parties ended up in a lawsuit with each side suing the other.

Both cases had similarities. In both cases, the former partners had a material deterioration of their business relationship. In both cases, the former partners had grown to dislike each other immensely. In both cases, one of the partners had caused significant financial harm and stress to the other. In both cases, one of the partners had taken action to undermine the business. Both cases ended up in litigation.

Just like romantic relationships, business relationships start with the same idealistic vison of harmony and bliss. However, in a business relationship it is not love and a family the individuals are seeking, instead it is business success and financial reward. Also like romantic relationships, when a business relationship deteriorates, the break-up can be heated, filled with animosity and cause severe financial consequences. The similarities between business break-ups and romantic break-ups are so similar that the term “business divorce” was coined to describe the former.

If you or a loved is involved in a business divorce, contact the Piccuta Law Group today. Our attorneys have experience handling business disputes. One of our attorneys will be available to discuss your case with you and provide a free consultation.