Question

Can I sue my business partner in South Carolina?

Sponsored Answer
Christy Ford Allen - Business Litigation - Super Lawyers

Answered by: Christy Ford Allen

Located in Charleston, SCWills Massalon & Allen LLC

Charleston, SC
Phone: 843-727-1144
Fax: 843-727-7696

View Profile
Answer

In South Carolina as in most states, there are many different types of business arrangements. Understanding what kind of business relationship you have with your business partner or partners is the first step to determining the rights and obligations of business partners to one another. Most businesses fall into one of the following categories: partnership (general or limited), limited liability company (LLC), or corporation (professional, non-profit, statutory close, or public benefit). For South Carolina law on business corporations, see http://www.scstatehouse.gov/code/title33.php.

The second step to determining whether you can sue your business partner is to locate and review any documents that govern the business relationship. For a corporation, those documents are generally called Shareholder Agreements and Bylaws. For an LLC, those documents are called the Operating Agreements. For partnerships, those documents are called Partnership Agreements.

Under certain circumstances, an owner in a business has a right to sue other owners to dissolve or end the corporation. Some owners may have the right to sue other owners for shareholder oppression or breach of fiduciary duty. As an owner, you may be able to sue for the value of your shares or membership interest.   

In a partnership, generally, the law holds each partner to the highest degree of good faith in dealing with his or her other partners related to the business, and does not allow the partners to take advantage of one another by any misrepresentation or concealment. 

In a corporation and LLC, whether one is a director or officer or shareholder, the type of corporation or LLC involved plays an important role in what duties run between owners.  

If you think that you may have a legal claim against a business partner or have been sued by a business partner, consult with a lawyer in your jurisdiction.

LEGAL DISCLAIMER: This site is designed for general information only and is not a solicitation for legal representation. This disclaimer is intended to inform the public that I am not calling, advertising, or promoting myself as an "expert" under any rules of professional conduct. The title "Super Lawyers" is solely controlled by SuperLawyers and is not my representation.

Disclaimer: The answer is intended to be for informational purposes only. It should not be relied on as legal advice, nor construed as a form of attorney-client relationship.

Other Answers By Christy Ford Allen

Photo of Christy Ford Allen

Can I sue my employer for unpaid wages in South Carolina?

In short, yes, you can sue for any earned wages that your employer has not yet paid you. South Carolina state law prohibits employers from …

Sponsored answer by Christy Ford Allen

Other Answers About Business Litigation

Photo of Vic B. Hill

Can I appeal a court decision in my Georgia divorce?

In a divorce, both parties retain more control over the outcome of important decisions such as custody and the division of marital assets when they …

Sponsored answer by Vic B. Hill

Photo of James H. Gibson

Can You Define An Unfair Trade Practice in Louisiana?

It used to be that only businesses could file an unfair trade suit against another business. But a few years ago the Supreme Court of the U.S. ruled …

Sponsored answer by James H. Gibson

Photo of Bryan R. Battina

What Duties and Responsibilities Do Shareholders Owe in Minnesota Closely Held Companies?

What is a closely held corporation under Minnesota law?A closely held corporation under Minnesota law is defined as a corporation with 35 or fewer …

Sponsored answer by Bryan R. Battina

Call Me
843-727-1144

To: Christy Ford Allen

Super Lawyers: Potential Client Inquiry

Disclaimer »
Privacy Policy »
*Required fields
Page Generated: 0.69727396965027 sec