When the people who own a company stop agreeing on how to run it, the business itself can be put at risk. San Miguel Law, P.C. represents Houston business owners, shareholders, LLC members, and partners in disputes involving ownership, control, distributions, financial misconduct, and buyouts.
If a co-owner has frozen you out, misused company funds, refused to honor an operating agreement, or created a management deadlock, we can help you understand your rights and determine the best path forward. Depending on the circumstances, that may involve a negotiated buyout, mediation, or business litigation. Our approach considers both your legal position and the practical effect the dispute may have on the company’s operations, value, and future.
Why Choose San Miguel Attorneys for a Houston Partnership Dispute?
An ownership dispute can affect years of work, your investment in the company, your income, and the future of the business. We bring commercial litigation and corporate law experience to these cases while providing the personal attention that closely held business conflicts often require.
Clients choose San Miguel Attorneys because we offer:
- A veteran-owned firm. Several members of our team have served, and we offer free consultations to active military members, veterans, police officers, and firefighters.
- Licensure in Texas and Mexico. Our bicultural firm can address disputes involving owners, companies, contracts, or assets on both sides of the border.
- A 100% bilingual English-Spanish team. We communicate with clients in the language they are most comfortable using.
- More than 16 years of commercial litigation and corporate law experience.
- More than 5,000 successful cases, including many million-dollar cases.
- Honest, personal service. We keep clients informed and provide straightforward advice.
- Offices in The Woodlands, Texas, and Monterrey, Mexico, serving Houston businesses and companies with cross-border interests.
What Are the Most Common Partnership and Shareholder Disputes?
Partnership and shareholder disputes can begin with a single disagreement or develop gradually as concerns about money, authority, or company direction grow.
Common disputes include:
- Breach of fiduciary duty, including self-dealing, diversion of business opportunities, or placing personal interests ahead of the company
- Freeze-outs and ownership conflicts, such as excluding an owner from management, company information, or distributions
- Financial misconduct, including suspected misuse of funds, undisclosed accounts, or questionable expenses
- Management and control disputes, particularly when equal owners reach a deadlock
- Departure and valuation disputes when an owner wants to leave or the parties disagree over the value of an ownership interest
- Competition and confidential information disputes involving departing owners, customers, employees, or trade secrets
The governing documents are often central to determining each owner’s rights. We review company agreements, partnership agreements, shareholder agreements, bylaws, financial records, and other relevant documents before recommending a strategy.
How Are Partnership and Shareholder Disputes Resolved?
Not every ownership conflict needs to end in a courtroom. The appropriate resolution depends on the parties’ legal rights, business goals, finances, and ability to continue working together.
Negotiated buyout
When the owners can no longer operate the company together, one owner may purchase the other’s interest. Negotiations can address valuation, payment terms, company debts, and responsibility for personal guarantees on leases, loans, or other obligations.
Mediation
A neutral mediator can help owners negotiate a resolution without leaving the final decision to a judge. Mediation may be particularly useful when both sides agree that the relationship needs to change or end but disagree about valuation or separation terms.
Litigation
Court action may be appropriate when negotiations fail or another owner’s conduct threatens the company or your ownership rights. Litigation may involve claims concerning fiduciary duties, contracts, company records, financial misconduct, or other ownership issues. Depending on the facts and applicable law, a party may also seek temporary court relief while the dispute is pending.
We prepare cases with the expectation that they may need to be tried while remaining open to a reasonable settlement when it serves your legal and business objectives.
What If My Business Partner or Company Assets Are in Mexico?
Cross-border ownership disputes can raise additional questions about jurisdiction, corporate structure, contracts, assets, and enforcement. A Houston-based company, for example, may have a co-owner in Monterrey, operations elsewhere in Mexico, or agreements governed by different laws.
Because our attorneys are licensed in Texas and Mexico and our team is fully bilingual, we can evaluate the U.S. and Mexican aspects of a dispute as part of a coordinated strategy. This can be particularly valuable when ownership interests, financial records, contracts, or assets cross the border.
Talk With a Houston Partnership & Shareholder Dispute Attorney
The earlier you address a serious ownership dispute, the more opportunity you may have to protect company records, preserve your rights, and pursue a business-focused resolution before the conflict escalates.
Contact San Miguel Law, P.C. for a free intake session with our team. We will evaluate whether your matter is one we can assist with and discuss whether negotiation, a buyout, mediation, or litigation makes sense for your situation.
Frequently Asked Questions
Can I sue my business partner if we never signed an agreement?
Potentially. Texas law can recognize a partnership based on the parties’ relationship and conduct even without a formal written partnership agreement. Documents such as emails, financial records, tax filings, and communications may become important evidence.
How long do I have to file a partnership or shareholder claim in Texas?
The deadline depends on the type of legal claim and the circumstances surrounding it. Because different statutes of limitations may apply, it is important to have the dispute reviewed promptly rather than assume you still have time to sue.
Will a partnership or shareholder dispute become public?
A lawsuit generally creates public court records. Negotiated settlements and mediation can provide greater privacy, although the level of confidentiality will depend on the circumstances and terms of the resolution.
Can the company continue operating while the owners are in litigation?
Often, yes. The business may continue operating while a dispute is pending, although serious disagreements over management or control can make that difficult. In some cases, temporary court relief may be available to address conduct that threatens the company while the litigation proceeds.