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Can I sue my business partner?

On Behalf of | Sep 7, 2022 | Business Litigation

When you get into a business partnership, you and your partners have similar goals: to grow the business and make profits. Unfortunately, it is not uncommon for business relationships to break down for numerous reasons.

When a party makes decisions that are detrimental to the partnership, the aggrieved party may consider seeking legal redress. There are a variety of reasons why you can sue a business partner. Here are the most common ones:

Breach of the partnership contract

Parties to the business partnership typically share in all important business decisions. However, if some parties are sidelined in the decision-making process, the outcome can be troubling. In this case, the sidelined party may consider filing a lawsuit. Some of the factors the court will consider when litigating a breach of a partnership agreement lawsuit include:

  • The existence of a valid and enforceable partnership agreement
  • Evidence that one party has breached the terms of the agreement
  • The breach has resulted in a loss for the business

Basically, a good partnership agreement should include provisions that address possible courses of action regarding breaches.


A party cannot just walk out of the partnership at will. Abandonment happens when one or some partners vacate the partnership agreement without following the due procedure. Abandonment amounts to a breach of fiduciary duty and can be a basis for taking legal action against a business partner. In a partnership, each party has a duty to place the interests of the business above their own.


Any actions or inaction by one partner that are deemed harmful to the partnership may amount to negligence. The elements of negligence in a business partnership include duty, breach of duty, causation and damages.

Done right, a business partnership can offer immense benefits to the parties involved. Find out how you can safeguard your rights and interests while engaging in a business partnership.