Navigating Your Business Through Challenging Disputes

Last updated on February 13, 2026

If you are in the middle of a partnership or business dispute, your business’s future may be threatened. It is important to have a well-planned dispute resolution strategy in place. The experienced business attorneys at R3M Law, LLP have represented clients in all types of commercial and corporate disputes. We are ready to manage yours efficiently and effectively. We have extensive litigation experience and can mediate or litigate a dispute, keeping in mind the optimal outcome for our client.

Extensive Experience In Dispute Resolutions

We can advocate if the trust between partners has been damaged or if there is any other business conflict. Our litigation skills and understanding of commercial law can facilitate a resolution favorable for your business.

The typical types of disputes where we represent clients are:

• Breach of business contract or financial agreements
• Violating a noncompete agreement
• Breach of the business partnership agreement
• Disclosure of confidential information
• Partnership dissolution
• Fraudulent conveyance actions
• Requests to use cash collateral and adequate protection disputes
• Employment disputes
• Lien Challenges
• Involuntary bankruptcy petitions
• Objections to claims

We work within many industries and with many types of businesses, including corporations, limited liability companies, banking, real estate and family-owned businesses. We are highly regarded as effective advocates in dispute resolution. We will get to know you and your business, then formulate a solid strategy that seeks to achieve your business goals. Protecting our clients’ business interests is our top priority.

Specific Dispute Resolution Methods

When a dispute starts to affect operations, we help clients choose a resolution method that matches the facts and the business goals. In New York, the main paths are mediation, arbitration and litigation. Each offers various levels of privacy, control and finality.

Mediation is a guided settlement discussion facilitated by a neutral third party. The mediator helps the sides communicate and explore solutions, but does not issue a decision. Mediation often works when both sides want a practical deal, want to limit disruption and may need to keep working together.

Arbitration is like a private trial. An arbitrator reviews evidence and arguments, then issues an award. Arbitration is often faster than court and more confidential, but it can limit discovery and appeal options.

Litigation takes place in court before a judge or jury. It can take longer and become public, but it provides strong tools such as subpoenas, motion practice and a clear path for appeal.

We often suggest mediation early for communication breakdowns, payment terms or unclear responsibilities. Arbitration may fit when the contract requires it or when the dispute is narrow enough to proceed with limited discovery. Litigation may be necessary when we need emergency court orders, when there are allegations of fraud or asset diversion, or when one side refuses to participate in good faith.

Costs and timelines vary. Mediation may be resolved within weeks with lower overall fees. Arbitration often takes months and includes filing fees and arbitrator fees. Litigation often takes months or longer, especially with extensive discovery or multiple parties.

Arbitration clauses are generally enforceable in New York when they are clear and cover the dispute at issue. Courts often compel arbitration unless there is a strong defense, such as unconscionability.

Fiduciary Duty Breaches

Many partnership disputes center on fiduciary duty. In New York, the three pillars are loyalty, care and good faith.

Loyalty means placing the partnership’s interests above personal gain. Care means acting with reasonable diligence and avoiding reckless harm. Good faith means honesty, fair dealing and a real effort to advance the partnership’s lawful goals.

A frequent trigger is self-dealing, such as taking partnership funds, steering work to a related business or taking a business opportunity that should have gone to the partnership. We focus on disclosures, approvals, and the records that show who knew what and when.

The “Business Judgment Rule” In New York

The business judgment rule can protect directors and managers from court second-guessing when they act in good faith, within their authority and through a reasonable decision process. It may not apply where there is fraud, conflicts of interest, waste or a lack of fair process.

New York Business And Partnership Disputes FAQs

It is common for even well-structured partnerships to experience unforeseen challenges. To help you address these concerns, we have answered some of the most commonly asked questions about New York partnership law.

How can I prevent partnership disputes from arising in my business?

Since a clear, written partnership agreement is the foundation for avoiding conflicts, the best step is to have a clear partnership agreement in place from the start. Under New York law, this agreement should outline roles, profit-sharing, decision-making processes and steps for resolving disagreements.

For best results, include provisions for scenarios such as exit strategies or changes in ownership. Regularly review and update the agreement as your business evolves. New York Partnership Law § 40 emphasizes fiduciary duties between partners, so ensuring transparency and accountability in day-to-day operations can also reduce risks. Open communication and documented expectations help align everyone’s interests.

What is the process for dissolving a partnership amicably?

It starts with checking your partnership agreement – if there is one – for exit terms. If not, the state’s partnership law steps in. You will need to agree to split assets and debts, notify creditors and file a Certificate of Dissolution with the state. Accomplishing this amicably often means talking it out and putting everything in writing to avoid surprises later.

How can I effectively challenge a lien placed on my business assets?

You can do this by proving it is invalid such as if the debt is not real or the lien was not filed properly. In that case, you would need to gather evidence, such as payment records, and possibly file a motion in court to remove it. Time matters; liens stick around until you act.

Can a business dispute be settled out of court?

Yes, many disputes in New York are settled through negotiation or mediation. It is often faster and less public than court. Both sides need to agree, and any deal should be written down and signed to hold up legally.

What should I bring to my consultation with a business attorney?

Bring any partnership agreements, contracts, emails or financial records tied to the issue. A timeline of what happened helps, too. The more you share, the clearer your legal options become under New York’s rules.

Discover Why You Need Our Litigation Team

We are highly skilled at both litigating and mediating complex business disputes. Whatever your business needs, we offer both knowledge and experience to help effectively resolve partnership and business disagreements. Call the firm at (877) 373-6811 or reach out online to schedule a consultation.

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