Partnership & LLP Disputes
The firm’s lawyers are experts in assisting and advising LLPs, traditional partnerships, members and partners to resolve their disputes. We are highly experienced in high value and complex disputes arising out of the winding up or dissolution of partnerships, team moves, enforcing or resisting restrictive covenants, forced retirements, the de-equitisation of members or partners, breach of “good leaver” and “bad leaver” provisions and breach of duties.
Such actions are sometimes particularly sensitive and we understand that the parties are normally keen to avoid the expense and disruption of court litigation or arbitration proceedings. Handled properly, it is often possible to find negotiated or mediated swift, commercial, discreet and pragmatic solutions, which enable the parties to continue to work together, or where that is not possible, for there to be a managed exit from the relationship by one party, on agreed terms. We focus on protecting reputations, improving prospects and managing financial exposure in a cost efficient way. Where pre-action settlement is not possible, we are experienced in bringing and defending both English High Court proceedings and arbitration proceedings in relation to such claims. Some of our partnership cases are international and involve proceedings in multiple jurisdictions.
CYK has a specialist partnership group working at the cutting edge of LLP disputes in the financial sector such as acting for hedge funds, as well as acting for accountancy and law firms and their members. We work with the leading barristers and experts who like us are specialist in their field.
Examples of the cases our lawyers have been involved in are where we acted:
- in a dispute between members of a hedge fund LLP where the issues related to mis-management of the LLP and freezing out of one party from the business;
- in a complex and high value partnership dispute involving allegations of dishonesty and misappropriation leading to multiple English Court proceedings and related disputes in Jersey, Thailand, Hong Kong and the BVI;
- acting for the defendant LLP and its members in a claim for the LLP to be struck off the Companies Register due to allegations that the LLP was fraudulently restored to the Register to pursue substantial (US$2 billion) and vexatious litigation in Mexico. The claim has been described as “extraordinary” by the English High Court;
- to advise an LLP member of his rights in relation to his exit from a City of London-based financial services business;
- for a partner in a well-known national law firm raising claims of mis-treatment and negotiating his exit from the firm in question;
- in a dispute between partners arising out of the dissolution of a partnership engaged in the business of financial advisers and mortgage brokers;
- for the majority shareholders of a management consultancy company in a dispute with the minority shareholder relating to the “good” and “bad” leaver provisions in the Articles of Association;
- for the majority shareholders in a joint venture company in ensuring that the minority shareholders did not divert the joint venture company’s assets to other companies; and
- in advising LLP members in connection with their forced retirement in a well-known City of London hedge fund LLP.
We are also actively involved with the Association of Partnership Practitioners, the leading professional organisation in this field of work.