All Partnerships End. Whether it occurs by sale, sickness, death or court order, your partnership will end at some point. Unfortunately, most partners do not have a written exit strategy or buy-out agreement in place. They implicitly trust their partner during the honeymoon phase only to later realize that substantial differences of opinion exist as to how the business should be run. Take Albert Trummer of Apotheke in Chinatown. Last year Mr. Trummer was arrested twice for lighting alcohol atop his bar on fire, something he has argued is a common bartenders’ practice. Partially at issue is whether Mr. Trummer’s partner, Heather Tierney, set Trummer up to be arrested in an effort to force him out of their partnership. According to Glenn Collins of the New York Times, the partnership dispute is now in mediation in New York County’s Supreme Court. A better practice is to build into your partnership agreement a buy-out provision while your partnership is still in its infancy. Partners must ask themselves what they will do when a dispute arises, if partner falls ill, or if a death occurs. Unless you want your partner’s husband or wife to inherit their interest in the partnership, these considerations must be given careful forethought. For more information on Partnership considerations, click here.
James DiPasquale, Esq
DIPASQUALE LAW GROUP
Restaurant Law New York
Like us on Facebook
Connect with us on Linkedin