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 matters commercially where possible and protect our clients’ interests when formal legal action becomes necessary. Our civil and commercial litigation lawyers represent both plaintiffs and defendants in NSW courts.

What is a business dispute?

A business dispute occurs when 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.

Types of Business Disputes We Handle

• Breach of contract: where one party fails to deliver, pay, or perform as agreed
• Partnership disputes: disagreements between business partners over management, profit share, or exit
• Director conflicts: disputes between directors over the management or direction of a company
• Shareholder disputes: conflicts between shareholders, including oppression claims and disputes over company control
• Supplier disputes: disagreements over the quality, delivery, or payment of goods and services
• Consumer law claims: disputes involving misleading conduct or unfair contract terms under the Australian Consumer Law

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 of 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 contract. 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.

For the full range of commercial law services we provide, including contract drafting, business sales, and commercial negotiations, see our commercial lawyers page.

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 at settlement, the use of ‘without prejudice’ means that the offer cannot be used as evidence against you in court if negotiations fail.

2. 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.

Before commencing court proceedings, mediation can often resolve business disputes more quickly and cost-effectively. See our guide to mediation as an alternative to litigation.

3. Court proceedings:

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

Areas We Assist

Our business disputes lawyers act for businesses throughout Sydney and across New South Wales, including Parramatta, Chatswood, North Sydney, Liverpool, Penrith, Ryde, Bondi Junction, Inner West, Sutherland Shire, Hornsby, Burwood, Bankstown, Manly, and Newtown, as well as clients in regional NSW.

Most business disputes are managed through negotiation and mediation conducted remotely by phone, email, and video conference, with court or NCAT appearances where required across the Sydney metropolitan area.

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 conflicts and minimise 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.