What are the Grounds to Sue Your Business Partner?

Business partnerships can turn sour for several reasons, including those that seem to warrant legal action. When that happens, you may wonder, what are the grounds to sue your business partner?

A business partner can sue for any number of reasons, although there are a few common causes, including the following:

Breach of agreement

If you entered the business with a valid, enforceable partnership agreement and your partner breaches the agreement, you may have grounds for a lawsuit. This is especially true if you or your business suffered damages due to the breach.

Business partners may enter into a variety of contractual agreements, including non-compete, non-disclosure, employment, and others. If any of these contracts are breached, the victim of the contract breach may consider suing.


If a partner’s actions or inactions harmed the business, a negligence claim may exist.

Fiduciary duty

A breach of fiduciary duty may exist if your partner acts in his or her own interest instead of doing what is best for the company.

Fraud or theft

If your business partner stole property or money from the company, you or the business may have a claim to recover the funds or items. Embezzlement or theft is also a criminal matter.

Intellectual property

If your company owns a trademark, patent, or copyright you may have grounds to sue your business partner if he or she uses this intellectual property without permission of the company.


If a business partner leaves the business before it is properly dissolved, abandonment may be grounds for a lawsuit.

Help is available

The attorneys at O'Reilly Rancilio are ready to assist you with matters related to business partnerships. For more information, please visit our website or call 586-726-1000.

Categories: Business