In some cases, one partner proves less competent or committed to the business than they initially indicated. Other times, a shift in priorities can result in partners having different goals for the organization. When partners disagree about the management of the organization they started together, the future direction of the company or even the continuation of contributions to the organization, those disagreements can damage their working relationship.

The foundational documents for the business and the agreement between the partners may impose specific obligations and clarify the plan for the company. An initial partnership agreement may even include provisions outlining a specific conflict resolution process when partners do not see eye-to-eye on key matters. Another common element in partnership agreements is a buy-sell agreement that can facilitate a smooth transition to sole ownership. 

Formal notice of a breach of contract or an invitation to alternative dispute resolution can motivate a business partner to address the conflict. Actually sitting down to discuss the matter could help the partners reach an amicable resolution. Ideally, each partner has a legal professional present to provide them with guidance and support during negotiations or alternative dispute resolution efforts.

When early attempts to realign partner perspectives and preserve the working relationship fail, the best solution may be for the partners to discuss a buyout arrangement. A previously signed buy-sell agreement can guide the process of business valuation and other details as one partner acquires the other’s interest in the company.

Without a buy-sell agreement, partners may need to negotiate an arrangement for a buyout. In scenarios where one partner refuses to accept an offer that aligns with the pre-existing agreement between the partners, civil litigation might be necessary to reach a resolution concerning business assets.

Litigation can also be helpful in scenarios involving breaches of contract or one partner’s breach of their fiduciary duty, possibly by embezzling from the company. Having assistance while addressing a dispute with a business partner can reduce the likelihood of lasting damage to the company or individual reputations. 

Grob & Associates Law Firm PC advises North Texas agreements on the negotiation of partnership agreements as well as the resolution of disputes between business owners. To discuss your particular issue, please call 972-777-5701 or contact us online. We have locations in Rockwall and Wylie. 

Texas followed the lead of approximately 30 other states by establishing a Business Court in 2024. Currently comprised of 10 judges across the state, the Business Court is authorized to adjudicate commercial litigation matters where the amount in controversy is at least $5 million. Judges are selected based on their skill and experience handling complex business cases. 

Given their background and ability to focus exclusively on commercial matters, the judges should be able to resolve sophisticated issues in this area of law with more speed and consistency. In the closing weeks of the 2025 legislative session, Governor Greg Abbott signed SB29, a measure that dovetails with the Texas Business Court by strengthening protections for board decision-making and giving companies more control over where and how internal disputes are heard.

Unlike the past, when a single shareholder was able to commence legal action challenging a good-faith decision of a corporation’s board of directors, the new Texas law now only permits these claims when at least 3 percent of shareholders take part. 

Though not originally within its purview, the Business Court is now empowered to preside over complex intellectual property disputes where there is state court jurisdiction. This includes lawsuits brought pursuant to the Texas Uniform Trade Secrets Act.

As Texas aims to attract businesses from Delaware and other locations, there might be additional changes affecting business litigation. Though the Business Court has statewide jurisdictions, judges currently sit only in the following five cities: Dallas; Fort Worth; Houston; Austin and San Antonio. Companies might revise their internal and external practices so that more matters go before the Business Court, so it is possible that the roster of jurists expands. 

The knowledgeable attorneys at Grob & Associates Law Firm PC advocate for clients in various types of Texas business litigation cases. To discuss your particular issue, please call us at 972-777-5701 or contact us online. Our offices are in Rockwall and Wylie.