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Business Disputes Lawyers

Business Disputes often arise between business owners, shareholders, directors, or partners. The disputes involve persons who are commercially and legally bound together. These matters often tie into legal duties, financial entitlements, and reputational interests in commercial relationships.

Citilawyers acts in business disputes across Sydney and New South Wales. We work to resolve disputes commercially where possible, and to protect our clients’ position through court proceedings where necessary.

What is a business dispute?

A business dispute occurs where there is a disagreement between parties who share a legal or commercial interest in a business.

Parties involved in business disputes usually have ongoing legal obligations owed to each other. Legal obligations may include fiduciary duties, statutory duties, shareholder rights, or partnership obligations.

Business disputes commonly involve allegations of a:

  • breach of fiduciary duty;
  • breach of directors’ duties under sections 180–184 of the Corporations Act 2001 (Cth);
  • oppressive or unfair conduct against minority shareholders under section 232 of the Corporations Act 2001 (Cth);
  • breach of a partnership agreement under the Partnership Act 1892 (NSW);
  • breach of a shareholders’ agreement, joint venture agreement, or franchise agreement;
  • misuse of confidential information or business assets; or
  • diversion of business opportunities.

Joint Venture Disputes

A joint venture arises when there is an agreement between two or more people who work together for a specific business project. A joint venture includes a legally binding contract that provides an outline of the shared obligations and liabilities. There are two forms of a joint venture, incorporated or unincorporated:

  • Incorporated: An incorporated joint venture occurs when a corporate entity undertakes the joint venture.
  • Unincorporated: A joint venture built upon a Joint Venture Agreement that imposes contractual rights and obligations on each party.

Disputes generally arise in relation to:

  • Decision-making deadlocks;
  • Unequal contributions;
  • Trust issues;
  • Conflicting objectives; and
  • Management issues.

Corporate Governance Disputes

Directors’ and officers’ owe a variety of duties and obligations under the Corporations Act 2001 (Cth). Business disputes often arise when there is a breach of a duty, such as a directors’ duty.

See Corporate Governance Lawyers for more information.

Shareholder Disputes

Shareholder disputes can impact the commercial relationship between members and the company. Understanding the potential conflicts that can arise and the benefits in implementing a Shareholders Agreement can assist in managing disputes.

See Shareholder Dispute Lawyers for more information.

Partnership Disputes

Partnership disputes generally arise when there is a breach of an obligation or fiduciary duty that is owed under a Partnership Agreement.

See Partnership Dispute Lawyers for more information.

Contractual Disputes

Disputes can arise when there are disagreements or breaches under a contact. It is important to be aware of what can be done to handle the existing conflict and to minimise the risk of any future issues.

See Contract Commercial Disputes Lawyers for more information.

How business disputes are resolved

Business disputes do not need to progress to litigation to be resolved. Citilawyers assesses the strength of the claim, available remedies and the commercial viability.

  1. Without prejudice negotiation:

The use of ‘without prejudice’ concerning correspondence, keeps the negotiations confidential when settlement discussions are made to resolve the dispute. When offers are made by a party in a genuine attempt for settlement, the use of ‘without prejudice’ means that the offer cannot be used as evidence against you in court if negotiations fail.

  1. Mediation and arbitration dispute resolution:

Mediation and arbitration are two of the most common forms of dispute resolution that can be utilised in business dispute matters. It is important to businesses that speed and expertise are exercised by the legal professionals assisting with a dispute. Dispute resolution offers a more efficient and cost-effective mechanism, as opposed to litigation, to resolve an issue.

  • Mediation is a voluntary process whereby a neutral third party assists the parties in facilitating an attempt at resolution. The impartial third party (the mediator) will guide the parties through the process and allow each party to present their side of the dispute.
  • Arbitration is a voluntary process, unless mandated by the court or by a contract, that involves a private arbitrator who facilitates the process and makes a final, legally binding decision. The parties produce their arguments and evidence to the arbitrator who will consider the matter and make the final impartial decision.
  1. Court proceedings:

If the business dispute cannot be resolved through dispute resolution, the matter may proceed to litigation.

Why choose Citilawyers?

Citilawyers provides legal solutions that address your commercial needs and individual interests that commonly arise in business disputes. Our team delivers strategic and practical advice to resolve conflict and minimise the operational disruptions to the business wherever possible.

If you are currently involved in a business dispute, Citilawyers can assist you in each stage of the process through to a resolution. Contact us online or call (02) 9233 7737.

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    Business Disputes often arise between business owners, shareholders, directors, or partners. The disputes involve persons who are commercially and legally bound together. These matters often tie into legal duties, financial entitlements, and reputational interests in commercial relationships.

    Citilawyers acts in business disputes across Sydney and New South Wales. We work to resolve disputes commercially where possible, and to protect our clients’ position through court proceedings where necessary.

    What is a business dispute?

    A business dispute occurs where there is a disagreement between parties who share a legal or commercial interest in a business.

    Parties involved in business disputes usually have ongoing legal obligations owed to each other. Legal obligations may include fiduciary duties, statutory duties, shareholder rights, or partnership obligations.

    Business disputes commonly involve allegations of a:

    • breach of fiduciary duty;
    • breach of directors’ duties under sections 180–184 of the Corporations Act 2001 (Cth);
    • oppressive or unfair conduct against minority shareholders under section 232 of the Corporations Act 2001 (Cth);
    • breach of a partnership agreement under the Partnership Act 1892 (NSW);
    • breach of a shareholders’ agreement, joint venture agreement, or franchise agreement;
    • misuse of confidential information or business assets; or
    • diversion of business opportunities.

    Joint Venture Disputes

    A joint venture arises when there is an agreement between two or more people who work together for a specific business project. A joint venture includes a legally binding contract that provides an outline of the shared obligations and liabilities. There are two forms of a joint venture, incorporated or unincorporated:

    • Incorporated: An incorporated joint venture occurs when a corporate entity undertakes the joint venture.
    • Unincorporated: A joint venture built upon a Joint Venture Agreement that imposes contractual rights and obligations on each party.

    Disputes generally arise in relation to:

    • Decision-making deadlocks;
    • Unequal contributions;
    • Trust issues;
    • Conflicting objectives; and
    • Management issues.

    Corporate Governance Disputes

    Directors’ and officers’ owe a variety of duties and obligations under the Corporations Act 2001 (Cth). Business disputes often arise when there is a breach of a duty, such as a directors’ duty.

    See Corporate Governance Lawyers for more information.

    Shareholder Disputes

    Shareholder disputes can impact the commercial relationship between members and the company. Understanding the potential conflicts that can arise and the benefits in implementing a Shareholders Agreement can assist in managing disputes.

    See Shareholder Dispute Lawyers for more information.

    Partnership Disputes

    Partnership disputes generally arise when there is a breach of an obligation or fiduciary duty that is owed under a Partnership Agreement.

    See Partnership Dispute Lawyers for more information.

    Contractual Disputes

    Disputes can arise when there are disagreements or breaches under a contact. It is important to be aware of what can be done to handle the existing conflict and to minimise the risk of any future issues.

    See Contract Commercial Disputes Lawyers for more information.

    How business disputes are resolved

    Business disputes do not need to progress to litigation to be resolved. Citilawyers assesses the strength of the claim, available remedies and the commercial viability.

    1. Without prejudice negotiation:

    The use of ‘without prejudice’ concerning correspondence, keeps the negotiations confidential when settlement discussions are made to resolve the dispute. When offers are made by a party in a genuine attempt for settlement, the use of ‘without prejudice’ means that the offer cannot be used as evidence against you in court if negotiations fail.

    1. Mediation and arbitration dispute resolution:

    Mediation and arbitration are two of the most common forms of dispute resolution that can be utilised in business dispute matters. It is important to businesses that speed and expertise are exercised by the legal professionals assisting with a dispute. Dispute resolution offers a more efficient and cost-effective mechanism, as opposed to litigation, to resolve an issue.

    • Mediation is a voluntary process whereby a neutral third party assists the parties in facilitating an attempt at resolution. The impartial third party (the mediator) will guide the parties through the process and allow each party to present their side of the dispute.
    • Arbitration is a voluntary process, unless mandated by the court or by a contract, that involves a private arbitrator who facilitates the process and makes a final, legally binding decision. The parties produce their arguments and evidence to the arbitrator who will consider the matter and make the final impartial decision.
    1. Court proceedings:

    If the business dispute cannot be resolved through dispute resolution, the matter may proceed to litigation.

    Why choose Citilawyers?

    Citilawyers provides legal solutions that address your commercial needs and individual interests that commonly arise in business disputes. Our team delivers strategic and practical advice to resolve conflict and minimise the operational disruptions to the business wherever possible.

    If you are currently involved in a business dispute, Citilawyers can assist you in each stage of the process through to a resolution. Contact us online or call (02) 9233 7737.

    Frequently Asked Questions

    What is the difference between a business dispute and a commercial dispute?

    A commercial dispute involves a disagreement between parties in a business context that is often between parties transacting at arm’s length. A business dispute involves parties who share a legal and commercial interest in the same business (shareholders, directors, partners, franchisees). Business disputes typically involve ongoing fiduciary or statutory duties, which can become legally and individually complex.

    Can I sue a business partner for taking money out of the business?

    If the conduct of the business partner is in breach of a partnership agreement, directors’ duty, or fiduciary obligation, then a cause of action may be available. Possible remedies include an account of profits, equitable compensation, an injunction, or in serious cases, termination of the partnership or winding up of the company. It is important to seek advice early to prepare a case to seek an appropriate remedy. For issues that are specific to partnerships, see our partnership disputes lawyers page.

    How long do business disputes take to resolve?

    Whilst there is no set timeframe for the period by which a matter may be settled, business disputes may be resolved within 3 to 12 months through negotiation or mediation. Court proceedings typically take 12 to 24 months from filing to final hearing. Urgent injunctive relief can usually be obtained within days or weeks.

    Do I need a written partnership or shareholders agreement to bring a claim?

    No. Even without a written agreement, parties have rights under the Partnership Act 1892 (NSW), the Corporations Act 2001 (Cth), and the general law of fiduciary duty. A written agreement makes the claim easier to prove, but its absence is not always detrimental to a claim. See our partnership disputes lawyers page for more information.