Can I sue my business partner for not paying me?
There is always a risk when you create your own business, and things can get even more complicated when there are other people involved, like a business partner. Although, having a business partner can be helpful for many reasons, like sharing costs, splitting the workload, and having someone there to help with difficult decisions. The problem is that when things are going great, everything is fine, but what happens if things start going wrong and you and your business partner do not see eye to eye anymore?
One problem you may have is that your business partner has stopped paying you due to a disagreement or falling out. A Dallas business lawyer can help you determine, officially, if you have the right to sue your business partner due to non-payment. But, a few things may help you decide if you want to choose that route.
You & your business partner’s agreement
You may want to look at the agreement or contract you both signed before getting into a partnership together. Your contracts may have various provisions, like a non-disclosure agreement, an employment agreement, or a partnership agreement. One of these agreements may have a clause in the contract stating that even if the partnership comes to an end, your partner has to keep on paying you, or it may say under no circumstances are each of you allowed to sue each other for not paying each other after a disagreement or termination of the partnership. An experienced and professional lawyer can help you determine what rights you have based on your contract with your business partner if you are having trouble deciding if you can sue them or not.
Litigation vs. mediation
Although litigation, also known as a lawsuit, is an option, it can be time-consuming and costly. If you choose litigation, you will need to hire a professional business lawyer to help you through the process. You need to take many steps to ensure that you get the best outcome for your case because going it alone can lead to costly mistakes. But, another great way to solve your problem with your business partner is mediation. Mediation is when you and the other party get together to hear each other’s concerns and evidence while being overseen by a mediator. The mediation process is used to reach a compromise where each party is happy; that way, you do not have to go through a costly and time-consuming trial. Plus, mediation makes things more private. After mediation is over and both parties reach an agreement, the mediator will draft a legally binding settlement that each party will have to follow.
So, depending on what the contract states when you and your business partner drafted the agreement will determine whether you can sue your business partner for not paying you. When you are not getting paid for something you helped build, it can be frustrating; just be sure to look at all your options and get the professional help you need to ensure you get what you fairly deserve.