In partnerships, people often believe that duties arise around money. That is true, but partners do not always recognize what the duties of their counterparts are. Understanding these duties is critical in any partnership dispute. These duties include:
- Duty of good faith,
- Duty of fair dealing,
- Duty of loyalty to the partnership,
- Duty of honesty, and
- Duty of care
Partners are expected to provide for the partnership with the best possible service. Under the duty of care, partners are expected to disclose all relevant and necessary information to the other partners. Essentially, when fiduciary duties are agreed upon, it is illegal for a fiduciary to act contrary to the best interest of the principle; like in this example, the partnership.
In general partnerships, all partners owe fiduciary duties to the partnership. Contrariwise, in limited partnerships non-managing partners do not usually owe duties to the partnership. If a limited partner participates in the management, direction, or operation of the partnership a court is likely to consider them a general partner despite what the partnership agreement may say.
If you think your partner owed you fiduciary duties and breached those duties , you may be entitled to legal remedies. Contact the business attorneys at Miller Law Group for your free consultation today, or call us at (919) 348-4361.