The number of partnership disputes heard in the High Court has dropped 20% in a year, although employment lawyers predict Brexit disruption could cause an uptick.
A mere 28 cases in 2017, compared to 35 cases in 2016, concerned partnership rows. Relatively few such disputes go to court as many partners prefer to resolve their difficulties privately through arbitration.
However, according to Ivor Adair, partner at Fox & Partners, which gathered the statistics, the figures are likely to rise for two reasons: lower disclosure requirements introduced this month, which may lower costs; and ‘Brexit-related economic shocks. Tightening trading conditions heighten disputes between partners about how lower profits are shared out or over any capital contributions that might be required. These conditions also lead to an increase in the number of partnerships that are dissolved.’
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