Partnership Obligations In Sarasota And Your Legal Options Under Florida Law

You built your business on trust and shared goals. When a partner makes unauthorized decisions, diverts funds, or otherwise fails to hold up their end of the agreement, it can threaten your business and the future you planned.

Our experienced Sarasota business litigation lawyer explains the tools available under Florida law to fight back. The sooner you act, the more options you have.

How The Law Applies to Sarasota Partnership Obligations

Under the Florida Revised Uniform Partnership Act (Chapter 620 of the Florida Statutes), partners owe each other specific legal duties, including a duty of loyalty and a duty of care. A partner violates those duties when they act in ways that benefit themselves at the business’s expense.

Common violations include misappropriating funds or business opportunities, acting in bad faith, or secretly opening a competing business using company resources. Other breaches that frequently end up in litigation include:

• Withdrawing or diverting business funds without authorization from other partners.
• Making major business decisions unilaterally when the agreement requires shared approval.
• Failing to make agreed capital contributions or fulfill assigned responsibilities.
• Sharing confidential business information with competitors or outside parties.
• Refusing to provide a proper accounting of finances when requested.

Under Florida law, it’s presumed that partners share profits and losses equally, unless the agreement states otherwise. Even an undocumented imbalance in contributions can become a serious point of dispute.

When a Partner Crosses the Line: Your Legal Options

When a partner crosses the line and engages in behavior that puts your business at risk, the first step is to pull out your partnership agreement. It may outline specific remedies, dispute resolution procedures, or buyout mechanisms that apply directly to the situation. Florida courts look to the written agreement first when evaluating a dispute, so understanding exactly what it says puts you in a stronger position from the start.

From there, your legal options will depend on the breach and the outcome you are seeking. Available remedies include:

• Mediation protects your privacy and allows you to resolve the dispute out of court.
• Filing a breach of contract or breach of fiduciary duty lawsuit, which can result in an award of damages, including lost profits.
• An accounting action compelling a partner to produce and justify a full record of business finances.
• An injunction stops them from continuing harmful conduct while litigation proceeds.
• Judicial dissolution, which a court may order when it is no longer reasonably practicable to continue the partnership.

There’s a five-year statute of limitations for breach of contract claims in Florida, while oral agreements carry four years, so do not assume you have unlimited time to respond.

Request a Consultation With Our Experienced Sarasota Business Litigation Lawyer

A partner violation does not have to mean the end of your business, but letting it go unaddressed usually makes things worse. At Suncoast Civil Law, we have over 50 years of combined experience helping business owners throughout the Central Gulf Coast evaluate their options and protect their interests. Request a consultation with our Sarasota business litigation lawyer today.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0620/0620ContentsIndex.html&StatuteYear=2022&Title=%2D%3E2022%2D%3EChapter%20620

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0095/Sections/0095.11.html