Disputes between partners and members of LLPs are invariably highly personal, with reputations and careers often at stake. The team at Pannone are very sensitive to these issues whilst providing robust, practical and commercial advice.
We regularly advise both remaining and departing partners and members in professional partnerships and LLPs including accountants, surveyors and solicitors. Within the team, we also have niche experience of disputes involving medical practitioner partnerships, particularly dentists and GPs. This is an area in which we are seeing a steady increase in the number of disputes which often require careful and considered liaison with the Primary Care Trusts.
Disputes which often arise involve the rights and liabilities of the parties following a partner’s or member’s retirement or expulsion from the partnership or LLP or the dissolution or winding-up of the organisation. We use mediation as a particularly effective tool to achieve sensible and cost effective resolutions as early as possible. Mediation has the added benefit of being a confidential process. However, if court action is needed, we take swift and decisive action. Our team has a wealth of litigation experience.
Two partners in our team are members of the Association of Partnership Practitioners, a multi-disciplinary organisation of specialist practitioners in partnership law. We are also highly ranked as a regional firm for partnership work by The Chambers Guide to the Legal Profession 2011.
We also work with specialists in our Corporate and Commercial teams to draft, update and revise existing partnership agreements and/or settlement agreements ensuring a complete service to clients in relation to drafting agreements and partnership law.
For further information in relation to drafting agreements and partnership law click here.
Our experience
Recent cases where we have acted in partnership and LLP disputes include:
- acting for a renowned London based architect following a breakdown in the relationship with his business partner in an LLP. We were required to investigate claims that the partner had sought to transfer work in progress and intellectual property out of the LLP and into a new vehicle. We prepared detailed schedules of loss which were utilised in mediation and a settlement was reached which reflected those losses. With effective use of pressure, and a timely mediation following voluntary disclosure, the dispute was settled at a relatively early stage
- acting for the remaining partners in a corporate finance LLP in a dispute concerning allegations that a partner had been unlawfully expelled. We were able to construct an effective defence and counterclaim supported by evidence undermining the outgoing partner's allegations. The dispute had threatened to overwhelm our client's practice and become a reputational management issue, however, we were able to "take the heat out" of the dispute and a settlement was achieved at mediation
- acting for an individual involved in a dispute regarding his status with a firm of solicitors with whom he had a business arrangement. The claim resulted in a key decision in partnership law: M Young Legal Associates Limited v Zahid Solicitors and Others [2006] EWCA Civ 613
- acting for a dentist in a breach of contract dispute between him and his primary care trust in relation to dental practice funding. This was the first breach of dental contract claim to be determined by the High Court on dispute resolution and other issues. The court found in favour of our client and the PCT he was claiming against was ordered to pay substantial damages and interest: David Edward Tomkins v Knowsley Primary Care Trust [2010] EWHC 1194
- acting for a dentist in a partnership dispute with his fellow partners over an alleged nootice of expulsion. The dispute settled on favourable terms at a very early stage
- acting for a practice of chartered surveyors in relation to a dispute with a former partner which included a claim for damages in respect of an undisclosed profit on a private investment. We obtained a favourable settlement for our client
- acting for a partner in a firm of commercial solicitors in relation to his expulsion from the partnership. We secured a very favourable pay out for our client
- acting for a GP and partner who was allegedly expelled from the partnership. It was eventually accepted by the other side that the expulsion was invalid and favourable retirement terms were agreed for our client
We will always remember that partnership and LLP disputes require sensitive handling and our approach to client service is as important as our understanding of the law.
To speak with a solicitor in the Dispute Resolution team please click here or call us on 0800 840 4929.
