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How to resolve partnership disputes in Ohio

On Behalf of | Dec 27, 2022 | Business Litigation

Running a business in Ohio can be incredibly rewarding, but it also carries a certain amount of risk. Disputes between partners can arise for many reasons and can quickly become costly when left unresolved. Therefore, being proactive in dealing with your misunderstanding while protecting your rights as a partner can help you avoid a more time-consuming and costly court process.


The simplest and fastest way to settle a partnership dispute in Ohio is through negotiation. This involves sitting down with your partner and discussing the issues at hand to come up with a mutually agreeable solution. Negotiation works best when both parties are willing to be reasonable and compromise, so it’s important to keep an open mind while still protecting your rights and interests.


If you and your partner have been unable to reach an agreement through negotiation, mediation may be a beneficial next step. Mediation is an informal process involving an impartial third-party mediator that facilitates communication between both sides by listening to their concerns and helping them come up with solutions. The mediator will not make any decisions on behalf of either side but instead helps guide both parties to a mutually beneficial solution.


Arbitration is another method involving an impartial third party, the arbitrator, who listens to the evidence presented by both sides and makes a binding decision about how to resolve the dispute. This process can be less expensive than business litigation and also offers more privacy than other methods of dispute resolution. However, it is important to ensure that any arbitration agreement between you and your partner is legally binding before proceeding with this option.

The Ohio Revised Code (ORC) states that an individual partner has the right to dissolve the partnership if another partner is acting in a way that is unreasonable or oppressive. This includes failing to abide by any of the mutually agreed-upon rules of the partnership, failing to adequately perform their duties as outlined in the agreement and endangering or misusing assets belonging to the business. So, if all methods fail, including litigation, you might want to consider a way out of the business and start up on your own or with other partners.