{"id":241,"date":"2026-10-16T17:26:59","date_gmt":"2026-10-16T17:26:59","guid":{"rendered":"https:\/\/34-24-254-23.nip.io\/?page_id=241"},"modified":"2026-10-28T06:50:19","modified_gmt":"2026-10-28T06:50:19","slug":"how-to-deal-with-a-dishonest-business-partner","status":"publish","type":"page","link":"https:\/\/kewlegal.com\/resources\/outside-general-counsel-for-businesses\/how-to-deal-with-a-dishonest-business-partner\/","title":{"rendered":"How to Deal With a Dishonest Business Partner in Florida"},"content":{"rendered":"\n<div class=\"wp-block-cover alignfull is-dark\" style=\"min-height:460px;aspect-ratio:unset;\"><span aria-hidden=\"true\" class=\"wp-block-cover__background has-secondary-background-color has-background-dim-60 has-background-dim\"><\/span><img class=\"wp-block-cover__image-background wp-image-238\" alt=\"Empty shelves and a &quot;Closed&quot; sign inside a small storefront after hours, with a &quot;For Sale&quot; notice on the window.\" src=\"https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo.jpg\" width=\"1376\" height=\"768\" srcset=\"https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo-150x150.jpg 150w, https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo-300x167.jpg 300w, https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo-768x429.jpg 768w, https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo-1024x572.jpg 1024w, https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo.jpg 1376w\" sizes=\"(max-width: 825px) 825px, 100vw\" fetchpriority=\"high\" decoding=\"async\"\/><div class=\"wp-block-cover__inner-container has-global-padding is-layout-constrained wp-block-cover-is-layout-constrained\">\n<p class=\"chg-eyebrow has-base-color has-text-color wp-block-paragraph\">Partnership Disputes | Coral Gables and Sunny Isles Beach<\/p><h1 class=\"wp-block-heading has-base-color has-text-color\">Dealing With a Dishonest Business Partner in Florida<\/h1><p class=\"has-base-color has-text-color wp-block-paragraph\" style=\"font-size:clamp(0.875rem, 0.875rem + ((1vw - 0.2rem) * 0.625), 1.25rem);\">General guidance for business owners in Miami-Dade and Broward counties. Start with your records, then choose the path that fits your facts.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Schedule a Consultation<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Schedule a Consultation<\/a><\/div><\/div>\n<\/div><\/div>\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:0.85rem;color:#6b7280;margin-bottom:1.5rem\">By Kristina E. Wilson \u00b7 Published October 11, 2026<\/p>\n\n<article lang=\"en\">\n\n<p><strong>Short answer:<\/strong> Start by reading your governing documents, saving your records, and writing down what you&#8217;ve noticed. Then choose a path, such as a written demand, mediation, a buyout, or a lawsuit if the facts support one.<\/p>\n<p>This guide explains how to deal with a dishonest business partner in Miami-Dade and Broward counties. It is general information, not legal advice about your situation. KEW Legal has offices in Coral Gables and Sunny Isles Beach, Florida, and focuses on business law. Some matters may be referred to another lawyer or firm. If yours is, we&#8217;ll tell you.<\/p>\n<p><em>En espa\u00f1ol:<\/em> Esta p\u00e1gina es publicada por KEW Legal, que tiene oficinas en Coral Gables y Sunny Isles Beach, Florida. Algunos asuntos pueden ser remitidos a otro abogado o bufete. Si el suyo lo es, se lo informaremos.<\/p>\n<h2>What Dishonesty Between Business Partners Often Looks Like<\/h2>\n<p>Dishonesty usually shows up as money or information that doesn&#8217;t add up. Common warning signs include:<\/p>\n<ul>\n<li>Transfers from company accounts with no clear reason<\/li>\n<li>Financial statements that arrive late or not at all<\/li>\n<li>Numbers that change from one report to the next<\/li>\n<li>Side deals the other owners never approved<\/li>\n<li>One partner who alone controls the bank accounts or books<\/li>\n<\/ul>\n<p>Not every disagreement is misconduct. Two owners can argue about pricing or hiring and still act in good faith. The line is crossed when a partner hides money, misleads co-owners, or takes value that belongs to the company. Florida law addresses that conduct directly. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.04091.html\">Fla. Stat. \u00a7 605.04091<\/a>, a member of a member-managed LLC, or a manager of a manager-managed LLC, must account for any profit or benefit gained from company property or company opportunities. A member of a manager-managed LLC generally does not owe these duties solely because of being a member.<\/p>\n<p>Start your own record early. A problem that looks small today can grow. You may be the one being deceived. You may also be tied to a partner who is accused of misconduct. Either way, the first step is the same: understand the facts.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-inside-a-dark-storefront-with-a-closed-sign-an-photo.jpg\" alt=\"Empty shelves inside a dark storefront, with a &quot;Closed&quot; sign and a &quot;For Sale&quot; notice on the window.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-contrast-color has-surface-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--surface,#f2f3f5);color:var(--wp--preset--color--contrast,#22252b);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-contrast-color has-text-color\">Not sure what your next step is?<\/h3><p class=\"wp-block-paragraph\">Talk it through with our team &#8212; the first consultation is free, confidential, and carries no obligation.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Get a free consultation<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Get a free consultation<\/a><\/div><\/div>\n<\/div>\n<h2>Start With Your Governing Documents<\/h2>\n<p>Your governing documents come first. For an LLC, that&#8217;s the operating agreement. For a partnership, it&#8217;s the partnership agreement. Corporations use bylaws and shareholder agreements. Read yours closely. Look for voting rules, information rights, buy-sell terms, dispute resolution clauses, and removal or expulsion terms.<\/p>\n<p>Check for steps that must happen before a lawsuit. Some agreements require written notice, a cure period, mediation, or arbitration. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0682\/Sections\/0682.02.html\">Fla. Stat. \u00a7 682.02<\/a>, an agreement to arbitrate is valid, enforceable, and irrevocable, with limited exceptions. Missing a required step can slow your case.<\/p>\n<p>What if the document is silent or outdated? Florida&#8217;s LLC statute fills the gap. Florida Statutes \u00a7 605.0105(3) separately provides that an operating agreement may not relieve or exonerate a person from liability for conduct involving bad faith, willful or intentional misconduct, or a knowing violation of law. Check whether any clause tries to do that.<\/p>\n<p>Finally, confirm the company&#8217;s status with the Florida Division of Corporations. The Division&#8217;s Sunbiz records show whether the entity is on file.<\/p>\n<h2>Preserve Records and Protect the Business<\/h2>\n<p>Keep copies of the records you can lawfully access. Store them outside the company&#8217;s systems, such as on a personal drive. Gather bank statements, general ledgers, tax returns, contracts, payroll records, emails, and texts.<\/p>\n<p>Write a dated log. Note what you saw, when you saw it, and what the partner said. Record who has signing authority and who controls online banking.<\/p>\n<p>Avoid self-help moves. Changing locks, cutting off a partner&#8217;s access without authority, or moving company money can create liability of its own. These moves can also weaken your position. If you want fewer unilateral transactions, discuss dual approval, but only in a way your documents allow.<\/p>\n<p>Florida LLCs must keep certain records. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0410.html\">Fla. Stat. \u00a7 605.0410<\/a>, an LLC keeps a current list of members and managers. It also keeps tax returns and financial statements for the three most recent years. If those records don&#8217;t exist, that fact matters.<\/p>\n<h2>Try Direct Communication and a Written Demand<\/h2>\n<p>A written demand is often the first formal step. Keep the tone factual. Name the specific records or transactions you want. Leave out insults and accusations you can&#8217;t support. Anything you write can later be used by either side.<\/p>\n<p>Your right to records depends on your entity type. In a partnership, the partnership must give partners access to its books during ordinary business hours. It may charge reasonable copy costs. In a member-managed LLC, a member may inspect and copy records after making a demand in a record, and the company generally has 10 days after receiving the demand to respond. In a manager-managed LLC, members keep their own inspection rights under Fla. Stat. \u00a7 605.0410(3). A member may obtain information if the member seeks it for a purpose material to the member&#8217;s interest as a member, makes a demand in a record that describes with reasonable particularity both the information sought and the purpose, and the information sought is directly connected to that purpose. The company generally has 10 days after receiving the demand to respond.<\/p>\n<p>If the company still refuses, the circuit court can act. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0411.html\">Fla. Stat. \u00a7 605.0411<\/a>, the court may summarily order inspection and copying at the company&#8217;s expense. The court must also order the company to pay reasonable costs and attorney fees. The exception is when the company proves it refused in good faith because it had a reasonable basis for doubt about your right.<\/p>\n<p>A written demand sometimes settles the issue without court. It also creates a clear record of what you asked for.<\/p>\n\n<div class=\"cta-dose-mid wp-block-group has-contrast-color has-surface-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--surface,#f2f3f5);color:var(--wp--preset--color--contrast,#22252b);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-contrast-color has-text-color\">Have questions about what happened?<\/h3><p class=\"wp-block-paragraph\">Ask our team directly. The first conversation is free, confidential, and there is no obligation to continue.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Talk to our team<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Talk to our team<\/a><\/div><\/div>\n<\/div>\n<h2>Consider Mediation and Negotiated Separation<\/h2>\n<p>Mediation brings a neutral person into the talks. That person helps the owners reach a written deal. Florida courts use it too. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0000-0099\/0044\/Sections\/0044.102.html\">Fla. Stat. \u00a7 44.102<\/a>, a court must refer a filed civil action for money damages to mediation when one party asks. The requesting party must be willing and able to pay, or the costs must be divided fairly. Some case types are excluded.<\/p>\n<p>Common settlement terms include a negotiated buyout, a revised operating agreement, a payment plan, a new split of duties, or an agreed exit date. Each term should be in writing and signed.<\/p>\n<p>Whether talks can work depends on a few things. Consider how much trust remains, whether the partner will share records, and what the business is worth. No one can predict how negotiations will end. Plan for more than one result.<\/p>\n<h2>Legal Claims That May Apply Under Florida Law<\/h2>\n<p>A dishonest partner may owe duties the company can enforce. Which duties apply depends on your entity type. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0620\/Sections\/0620.8404.html\">Fla. Stat. \u00a7 620.8404<\/a>, a partner&#8217;s fiduciary duties are limited to loyalty and care. The duty of loyalty includes accounting for profit from partnership business. The duty of care covers grossly negligent or reckless conduct, intentional misconduct, and knowing violations of law.<\/p>\n<p>Members of a member-managed LLC and managers of a manager-managed LLC owe similar duties under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.04091.html\">Fla. Stat. \u00a7 605.04091<\/a>. They must also act with good faith and fair dealing. A member of a manager-managed LLC generally does not owe these duties solely because of being a member.<\/p>\n<p>Other claims may include fraud, misrepresentation, or breach of the governing documents or a contract. Each claim has its own proof requirements. The documents and facts decide which claims fit.<\/p>\n<p>Timing matters. Florida law sets separate deadlines for bringing a lawsuit on a written contract and on an oral or unwritten contract. Other time limits can apply. Review timing early, not after the deadline is close.<\/p>\n<h2>Forcing a Partner Out or Ending the Partnership<\/h2>\n<p>Whether a partner can be removed, and how, often depends on what your partnership or operating agreement says, so reviewing those documents is a sensible first step. Start with the buyout, removal, or expulsion terms in your agreement. Many agreements also explain how to value a departing owner&#8217;s stake. Valuation fights are common, so get the method in writing.<\/p>\n<p>If owners are deadlocked, the agreement may include a deadlock sale provision. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0702.html\">Fla. Stat. \u00a7 605.0702<\/a>, that provision can resolve the deadlock if it starts before the court finds grounds for dissolution. The same section lets a member ask the court to dissolve an LLC. Grounds include illegal or fraudulent conduct by those in control, and misappropriation or waste of company assets that causes injury.<\/p>\n<p>A dissolution case is filed in circuit court. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0703.html\">Fla. Stat. \u00a7 605.0703<\/a>, venue lies in the county where the principal office is or was last located. While the case is pending, the court may appoint a receiver or custodian to protect company assets.<\/p>\n<p>In a dissolution proceeding brought by a member under \u00a7 605.0702(1)(b), the company may elect to buy that member&#8217;s interest. If the company does not make that election, the other members may. Under <a href=\"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&amp;URL=0600-0699\/0605\/Sections\/0605.0706.html\">Fla. Stat. \u00a7 605.0706<\/a>, the election may be filed within 90 days after the petition, unless the court allows more time. Non-compete terms and tax results also shape any exit. <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/business-structures\">IRS guidance on business structures<\/a> explains how entity type affects tax treatment.<\/p>\n\n<figure class=\"wp-block-image size-large has-custom-border\"><img decoding=\"async\" src=\"https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-inside-a-closed-small-business-storefront-with-photo-1.jpg\" alt=\"Empty shelves inside a closed small business storefront, with a &quot;for sale&quot; notice in the window.\" style=\"border-radius:8px;width:100%;aspect-ratio:16\/9;object-fit:cover\"\/><\/figure>\n\n<div class=\"cta-dose-mid wp-block-group has-contrast-color has-surface-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--surface,#f2f3f5);color:var(--wp--preset--color--contrast,#22252b);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-contrast-color has-text-color\">Want to know where you stand?<\/h3><p class=\"wp-block-paragraph\">Tell us what happened and our team will walk you through the options available to you, at no cost.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Get a free review<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Get a free review<\/a><\/div><\/div>\n<\/div>\n<h2>Common Mistakes to Avoid and When to Bring in Outside Counsel<\/h2>\n<p>The biggest mistakes weaken your position. People delete messages, sign new agreements under pressure, confront a partner without a plan, or use company money to cover disputed costs. Keep everything. Pause before signing anything new.<\/p>\n<p>Bring a short packet to a first conversation. Include the governing documents, financial records, a timeline of events, and a list of your goals. Decide whether you want to stay, sell, or exit. Those goals shape every later step.<\/p>\n<p>Some business owners use outside general counsel for ongoing legal issues instead of handling each matter on its own. KEW Legal&#8217;s outside general counsel for businesses page explains that model.<\/p>\n<h3>Common questions<\/h3>\n<p><strong>Can you sue a business partner for fraud in Florida?<\/strong>\nPossibly. Whether a fraud claim fits depends on your documents, the records, and what the partner did.<\/p>\n<p><strong>How long do I have to sue a business partner?<\/strong>\nFlorida sets time limits under \u00a7 95.11. A claim on a contract not in writing generally must start within four years.<\/p>\n<p><strong>Can I force a dishonest partner out?<\/strong>\nUsually only through a buyout, a removal clause, or a court-ordered remedy. Each path depends on your documents and Florida law.<\/p>\n<p>If a partner&#8217;s conduct has you second-guessing the books, you don&#8217;t have to work out the next steps alone. Call KEW Legal at 305-990-2300 or <a href=\"https:\/\/kewlegal.com\/contact-us\/\">send us a message<\/a>.<\/p>\n\n<\/article>\n<footer class=\"disclaimer\"><em>The engagement of a lawyer is an important decision that should not be based solely upon advertisements. The information on this website is general information about KEW Legal and the services we offer; it does not constitute legal advice and is intended for informational purposes only. Accessing this website or contacting our firm does not establish an attorney-client relationship.<\/em><\/footer>\n\n\n<div class=\"wp-block-group alignfull has-surface-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Four Steps to Organize Your Situation<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Read your governing documents<\/h3><p class=\"wp-block-paragraph\">Review the operating agreement, partnership agreement, bylaws, and any buy-sell terms. These papers often set out voting rights, information rights, and how a partner can exit.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Save your records<\/h3><p class=\"wp-block-paragraph\">Keep bank statements, emails, texts, ledgers, tax filings, and meeting notes. Store copies somewhere you control so they are not lost or changed.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Write down what you have noticed<\/h3><p class=\"wp-block-paragraph\">Record dates, amounts, who was involved, and what was said. A clear timeline helps you and your counsel understand the facts.<\/p><\/div><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-group has-base-background-color has-background is-layout-flow wp-block-group-is-layout-flow\" style=\"border-radius:8px;box-shadow:0 4px 14px rgba(0,0,0,0.08);padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem\"><h3 class=\"wp-block-heading\">Choose a path<\/h3><p class=\"wp-block-paragraph\">Options can include a written demand, negotiation, mediation, a negotiated buyout, or litigation if the facts support it. The right choice depends on your agreements and the evidence.<\/p><\/div><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group alignwide has-global-padding is-layout-constrained wp-container-core-group-is-layout-583d630a wp-block-group-is-layout-constrained\" style=\"padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center\">Common Partner Disputes We Address<\/h2>\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-f56f613f wp-block-columns-is-layout-flex\"><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--users\"><\/span><\/p><h3 class=\"wp-block-heading\">Partnership disputes<\/h3><p class=\"wp-block-paragraph\">Matters involving misuse of funds, concealed income, deadlock, or a partner acting outside the company&#x27;s agreements.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--document\"><\/span><\/p><h3 class=\"wp-block-heading\">Business contracts and vendor disputes<\/h3><p class=\"wp-block-paragraph\">Disagreements over payments, deliverables, or terms with vendors, customers, or other companies tied to the business.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--shield\"><\/span><\/p><h3 class=\"wp-block-heading\">Business succession and buyouts<\/h3><p class=\"wp-block-paragraph\">Structuring an exit, a buyout, or a transfer of ownership so the business continues on clear terms.<\/p><\/div><div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><p class=\"wp-block-paragraph\"><span class=\"chg-icon chg-icon--lightbulb\"><\/span><\/p><h3 class=\"wp-block-heading\">Outside general counsel<\/h3><p class=\"wp-block-paragraph\">Ongoing business law support for owners who want legal input on contracts, employees, leases, and governance.<\/p><\/div><\/div>\n\n<\/div>\n\n\n\n<div class=\"wp-block-group has-contrast-color has-surface-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-32197852 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--surface,#f2f3f5);color:var(--wp--preset--color--contrast,#22252b);border-radius:8px;padding-top:1.5rem;padding-bottom:1.5rem;padding-left:1.5rem;padding-right:1.5rem;border-left:6px solid var(--wp--preset--color--cta,currentColor);box-shadow:0 2px 10px rgba(0,0,0,0.18)\">\n<h3 class=\"wp-block-heading has-contrast-color has-text-color\">Before You Confront Your Partner<\/h3><p class=\"wp-block-paragraph\">Avoid moving money, changing bank access, or sending accusations until you understand your agreements and options. Early written communications can shape how a later dispute unfolds.<\/p><div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Talk With KEW Legal<\/a><\/div><div class=\"wp-block-button chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Talk With KEW Legal<\/a><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-base-color has-primary-background-color has-text-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-4d466591 wp-block-group-is-layout-constrained\" style=\"background-color:var(--wp--preset--color--primary,#20242e);color:var(--wp--preset--color--base,#ffffff);padding-top:3rem;padding-bottom:3rem;padding-left:1.5rem;padding-right:1.5rem\">\n<h2 class=\"wp-block-heading has-text-align-center has-base-color has-text-color\">Discuss your partnership dispute with KEW Legal, a Florida business law firm focused on business matters in Coral Gables and Sunny Isles Beach.<\/h2>\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-0aa01211 wp-block-buttons-is-layout-flex\"><div class=\"wp-block-button chg-cta chg-cta-call\"><a class=\"wp-block-button__link wp-element-button\" href=\"tel:+13059902300\">Schedule a Consultation or Call 305-990-2300<\/a><\/div><div class=\"wp-block-button chg-cta chg-cta-form\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/kewlegal.com\/contact-us\/\">Schedule a Consultation or Call 305-990-2300<\/a><\/div><\/div>\n<\/div>\n\n<h2 class=\"wp-block-heading\">Related practice areas<\/h2><ul class=\"wp-block-list\"><li>Signs of a Toxic Business Partner: Florida Red Flags<\/li><\/ul>\n<!-- chg:section-siblings -->\n<nav aria-label=\"More in this section\">\n<h2>More in this section<\/h2>\n<ul><li><a href=\"\/resources\/outside-general-counsel-for-businesses\/how-to-handle-a-toxic-business-partner\/\">How to handle a toxic business partner?<\/a><\/li><li><a href=\"\/resources\/outside-general-counsel-for-businesses\/key-partner-departure-continuity-plan-florida\/\">Business Succession Planning Questions for Owners Before a Key Partner Leaves<\/a><\/li><li><a href=\"\/resources\/outside-general-counsel-for-businesses\/llc-member-oppression-attorney-florida\/\">LLC Member Oppression Attorney in Florida: Protecting a Minority Owner<\/a><\/li><li><a href=\"\/resources\/outside-general-counsel-for-businesses\/llc-partner-financial-information-rights-florida\/\">Outside General Counsel for Partner Information Rights and Financial Access in Florida LLCs<\/a><\/li><li><a href=\"\/resources\/outside-general-counsel-for-businesses\/llc-succession-key-person-planning-attorney-florida\/\">LLC Succession and Key-Person Planning Attorney in Florida | KEW Legal<\/a><\/li><\/ul>\n<\/nav>\n<!-- \/chg:section-siblings -->","protected":false},"excerpt":{"rendered":"<p>Dishonest business partner in Florida? Learn the warning signs, records steps, and options under Florida LLC and partnership law.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":14,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"chg_review":"{\"v\": 1, \"checked_at\": \"2026-10-11T03:19:45+00:00\", \"checked\": true, \"jurisdiction\": \"Florida\", \"claims\": [{\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.04091.html\", \"cite\": \"Fla. Stat. \u00a7 605.04091\", \"heading\": \"Standards of conduct for members and managers.\", \"support\": \"Accounting to the limited liability company and holding as trustee for it any property, profit, or benefit derived by the manager or member, as applicable\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) The duty of loyalty includes: (a) Accounting to the limited liability company and holding as trustee for it any property, profit, or benefit derived by the manager or member, as applicable: 1. In the conduct or winding up of the company\u2019s activities and affairs; 2. From the use by the member or manager of the company\u2019s property; or 3. From the appropriation of a company opportunity; \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.04091, an LLC manager or member must account for any profit or benefit gained from company property or company opportunities.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0682\/Sections\/0682.02.html\", \"cite\": \"Fla. Stat. \u00a7 682.02\", \"heading\": \"Arbitration agreements made valid, irrevocable, and enforceable; scope.\", \"support\": \"is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract\", \"verdict\": \"supported\", \"law_text\": \"(1) An agreement contained in a record to submit to arbitration any existing or subsequent controversy arising between the parties to the agreement is valid, enforceable, and irrevocable except upon a ground that exists at law or in equity for the revocation of a contract. (2) The court shall decide whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate. (3) An arbitrator shall decide whether a condition precedent to arbitrability has been fulfilled and whether a contract containing a valid agreement to arbitrate is enforceable. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 682.02, an agreement to arbitrate is valid, enforceable, and irrevocable, with limited exceptions.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0105.html\", \"cite\": \"Fla. Stat. \u00a7 605.0105\", \"heading\": \"Operating agreement; scope, function, and limitations.\", \"support\": \"Relieve or exonerate a person from liability for conduct involving bad faith, willful or intentional misconduct, or a knowing violation of law.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 605.04091, except as otherwise provided in subsection (4). (f) Eliminate the obligation of good faith and fair dealing under s. 605.04091, but the operating agreement may prescribe the standards by which the performance of the obligation is to be measured if the standards are not manifestly unreasonable. (g) Relieve or exonerate a person from liability for conduct involving bad faith, willful or intentional misconduct, or a knowing violation of law. (h) Unreasonably restrict the duties and rights stated in s. 605.0410, but the operating agreement may impose reasonable restrictions on the availability and use of information obtained under that section and may define appropriate remedies, including liquidated damages, for a breach of a reasonable restriction on use. \u2026\", \"sentence\": \"The same section also says an operating agreement cannot relieve someone of liability for bad faith, willful misconduct, or a knowing violation of law.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"A limited liability company shall keep at its principal office or another location the following records:\", \"verdict\": \"supported\", \"law_text\": \"(1) A limited liability company shall keep at its principal office or another location the following records: (a) A current list of the full names and last known business, residence, or mailing addresses of each member and manager. (b) A copy of the then-effective operating agreement, if made in a record, and all amendments thereto if made in a record. \u2026\", \"sentence\": \"Florida LLCs must keep certain records.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"A current list of the full names and last known business, residence, or mailing addresses of each member and manager.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (a) A current list of the full names and last known business, residence, or mailing addresses of each member and manager. (b) A copy of the then-effective operating agreement, if made in a record, and all amendments thereto if made in a record. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.0410, an LLC keeps a current list of members and managers.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"also\": [{\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"Copies of the financial statements of the limited liability company, if any, for the 3 most recent years.\", \"law_text\": \"\u2026 (d) Copies of the limited liability company\u2019s federal, state, and local income tax returns and reports, if any, for the 3 most recent years. (e) Copies of the financial statements of the limited liability company, if any, for the 3 most recent years. (f) Unless contained in an operating agreement made in a record, a record stating the amount of cash and a description and statement of the agreed value of the property or other benefits contributed and agreed to be contributed by each member, and the times at which or occurrence of events upon which additional contributions agreed to be made b \u2026\"}], \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"Copies of the limited liability company\u2019s federal, state, and local income tax returns and reports, if any, for the 3 most recent years.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (d) Copies of the limited liability company\u2019s federal, state, and local income tax returns and reports, if any, for the 3 most recent years. (e) Copies of the financial statements of the limited liability company, if any, for the 3 most recent years. \u2026\", \"sentence\": \"It also keeps tax returns and financial statements for the three most recent years.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"also\": [{\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8403.html\", \"cite\": \"Fla. Stat. \u00a7 620.8403\", \"heading\": \"Partner\u2019s rights and duties with respect to information.\", \"support\": \"A partnership shall provide partners and their agents and attorneys access to the books and records of the partnership.\", \"law_text\": \"\u2026 (2) A partnership shall provide partners and their agents and attorneys access to the books and records of the partnership. The partnership shall provide former partners and their agents and attorneys access to books and records pertaining to the period during which they were partners. The right of access provides the opportunity to inspect and copy books and records during ordinary business hours. \u2026\"}], \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"In a member-managed limited liability company, the following rules apply:\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) In a member-managed limited liability company, the following rules apply: (a) Upon reasonable notice, a member may inspect and copy during regular business hours, at a reasonable location specified by the company: 1. The records described in subsection (1); and 2. \u2026\", \"sentence\": \"Your right to records depends on your entity type.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8403.html\", \"cite\": \"Fla. Stat. \u00a7 620.8403\", \"heading\": \"Partner\u2019s rights and duties with respect to information.\", \"support\": \"The right of access provides the opportunity to inspect and copy books and records during ordinary business hours.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) A partnership shall provide partners and their agents and attorneys access to the books and records of the partnership. The partnership shall provide former partners and their agents and attorneys access to books and records pertaining to the period during which they were partners. The right of access provides the opportunity to inspect and copy books and records during ordinary business hours. A partnership may impose a reasonable charge, covering the costs of labor and material, for copies of documents furnished. (3) Each partner and the partnership shall furnish to a partner, and to the legal representative of a deceased partner or partner under legal disability: \u2026\", \"sentence\": \"In a partnership, the partnership must give partners access to its books during ordinary business hours.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"A limited liability company may charge a person who makes a demand under this section the reasonable costs of copying, which costs are limited to the costs of labor and materials.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (b) The person seeks the information in good faith; and (c) The person satisfies the requirements imposed on a member by paragraph (3)(b). (5) A limited liability company shall respond to a demand made pursuant to subsection (4) in the manner provided in paragraph (3)(c). (6) A limited liability company may charge a person who makes a demand under this section the reasonable costs of copying, which costs are limited to the costs of labor and materials. (7) A member or person dissociated as a member may exercise rights under this section through an agent or, in the case of an individual under legal disability or an entity that is dissolved or its existence terminated, through a legal representative. \u2026\", \"sentence\": \"It may charge reasonable copy costs.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"Upon reasonable notice, a member may inspect and copy during regular business hours, at a reasonable location specified by the company:\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) In a member-managed limited liability company, the following rules apply: (a) Upon reasonable notice, a member may inspect and copy during regular business hours, at a reasonable location specified by the company: 1. The records described in subsection (1); and 2. Each other record maintained by the company regarding the company\u2019s activities, affairs, financial condition, and other circumstances, to the extent the information is material to the member\u2019s rights and duties under the operating agreement or this chapter. \u2026\", \"sentence\": \"In a member-managed LLC, a member may inspect and copy records on reasonable notice.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0410.html\", \"cite\": \"Fla. Stat. \u00a7 605.0410\", \"heading\": \"Records to be kept; rights of member, manager, and person dissociated to information.\", \"support\": \"The informational rights stated in subsection (2) and the duty stated in paragraph (2)(d) apply to the managers and not to the members.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (d) The duty to furnish information under this subsection also applies to each member to the extent the member knows any of the information described in this subsection. (3) In a manager-managed limited liability company, the following rules apply: (a) The informational rights stated in subsection (2) and the duty stated in paragraph (2)(d) apply to the managers and not to the members. (b) During regular business hours and at a reasonable location specified by the company, a member may inspect and copy: 1. The records described in subsection (1); and 2. Full information regarding the activities, affairs, financial condition, and other circumstances of the company as is just and reasonable if: a. \u2026\", \"sentence\": \"In a manager-managed LLC, those rights run to the managers, not the members.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0411.html\", \"cite\": \"Fla. Stat. \u00a7 605.0411\", \"heading\": \"Court-ordered inspection.\", \"support\": \"may summarily order inspection and copying of the records demanded\", \"verdict\": \"supported\", \"law_text\": \"\u2026 r (4), as applicable, to inspect and copy any records required by that section to be available for inspection, the circuit court in the county where the limited liability company\u2019s principal office is or was last located, as shown by the records of the department or, if there is no principal office in this state, where its registered office is or was last located, may summarily order inspection and copying of the records demanded, at the limited liability company\u2019s expense, upon application of the member, manager, or other person. \u2026\", \"sentence\": \"If the company still refuses, the circuit court can act.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0411.html\", \"cite\": \"Fla. Stat. \u00a7 605.0411\", \"heading\": \"Court-ordered inspection.\", \"support\": \"may summarily order inspection and copying of the records demanded, at the limited liability company\u2019s expense\", \"verdict\": \"supported\", \"law_text\": \"\u2026 to inspect and copy any records required by that section to be available for inspection, the circuit court in the county where the limited liability company\u2019s principal office is or was last located, as shown by the records of the department or, if there is no principal office in this state, where its registered office is or was last located, may summarily order inspection and copying of the records demanded, at the limited liability company\u2019s expense, upon application of the member, manager, or other person. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.0411, the court may summarily order inspection and copying at the company's expense.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0411.html\", \"cite\": \"Fla. Stat. \u00a7 605.0411\", \"heading\": \"Court-ordered inspection.\", \"support\": \"it shall also order the limited liability company to pay the costs, including reasonable attorney fees\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) If the court orders inspection or copying of the records demanded, it shall also order the limited liability company to pay the costs, including reasonable attorney fees, reasonably incurred by the member, manager, or other person seeking the records to obtain the order and enforce its rights under this section unless the limited liability company proves that it refused inspection in good faith because the company had a reasonable basis for doubt about the right of the member, manager, or such other person to ins \u2026\", \"sentence\": \"The court must also order the company to pay reasonable costs and attorney fees.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0411.html\", \"cite\": \"Fla. Stat. \u00a7 605.0411\", \"heading\": \"Court-ordered inspection.\", \"support\": \"unless the limited liability company proves that it refused inspection in good faith because the company had a reasonable basis for doubt about the right of the member, manager, or such other person to inspect or copy the records demanded\", \"verdict\": \"supported\", \"law_text\": \"\u2026 r copying of the records demanded, it shall also order the limited liability company to pay the costs, including reasonable attorney fees, reasonably incurred by the member, manager, or other person seeking the records to obtain the order and enforce its rights under this section unless the limited liability company proves that it refused inspection in good faith because the company had a reasonable basis for doubt about the right of the member, manager, or such other person to inspect or copy the records demanded. (3) If the court orders inspection or copying of the records demanded, it may impose reasonable restrictions on the use or distribution of the records by the member, manager, or other person demanding such records. History: s. 2, ch. 2013-180.\", \"sentence\": \"The exception is when the company proves it refused in good faith because it had a reasonable basis for doubt about your right.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0044\/Sections\/0044.102.html\", \"cite\": \"Fla. Stat. \u00a7 44.102\", \"heading\": \"Court-ordered mediation.\", \"support\": \"Must, upon request of one party, refer to mediation any filed civil action for monetary damages\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) A court, under rules adopted by the Supreme Court: (a) Must, upon request of one party, refer to mediation any filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless: 1. The action is a landlord and tenant dispute that does not include a claim for personal injury. 2. The action is filed for the purpose of collecting a debt. 3. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 44.102, a court must refer a filed civil action for money damages to mediation when one party asks.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0044\/Sections\/0044.102.html\", \"cite\": \"Fla. Stat. \u00a7 44.102\", \"heading\": \"Court-ordered mediation.\", \"support\": \"provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) A court, under rules adopted by the Supreme Court: (a) Must, upon request of one party, refer to mediation any filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless: 1. The action is a landlord and tenant dispute that does not include a claim for personal injury. 2. The action is filed for the purpose of collecting a debt. 3. The action is a claim of medical malpractice. 4. The action is governed by the Florida Small Claims Rules. 5. \u2026\", \"sentence\": \"The requesting party must be willing and able to pay, or the costs must be divided fairly.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0044\/Sections\/0044.102.html\", \"cite\": \"Fla. Stat. \u00a7 44.102\", \"heading\": \"Court-ordered mediation.\", \"support\": \"unless: 1. The action is a landlord and tenant dispute that does not include a claim for personal injury.\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) A court, under rules adopted by the Supreme Court: (a) Must, upon request of one party, refer to mediation any filed civil action for monetary damages, provided the requesting party is willing and able to pay the costs of the mediation or the costs can be equitably divided between the parties, unless: 1. The action is a landlord and tenant dispute that does not include a claim for personal injury. 2. The action is filed for the purpose of collecting a debt. 3. The action is a claim of medical malpractice. 4. The action is governed by the Florida Small Claims Rules. 5. The court determines that the action is proper for referral to nonbinding arbitration under this chapter. 6. The parties have agreed to binding arbitration. 7. \u2026\", \"sentence\": \"Some case types are excluded.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8404.html\", \"cite\": \"Fla. Stat. \u00a7 620.8404\", \"heading\": \"General standards of partner\u2019s conduct.\", \"support\": \"The only fiduciary duties a partner owes to the partnership and the other partners are the duty of loyalty and the duty of care\", \"verdict\": \"supported\", \"law_text\": \"(1) The only fiduciary duties a partner owes to the partnership and the other partners are the duty of loyalty and the duty of care, as set forth in subsections (2) and (3). (2) A partner\u2019s duty of loyalty to the partnership and the other partners is limited to the following: \u2026\", \"sentence\": \"A dishonest partner may owe duties the company can enforce.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8404.html\", \"cite\": \"Fla. Stat. \u00a7 620.8404\", \"heading\": \"General standards of partner\u2019s conduct.\", \"support\": \"The only fiduciary duties a partner owes to the partnership and the other partners are the duty of loyalty and the duty of care\", \"verdict\": \"supported\", \"law_text\": \"(1) The only fiduciary duties a partner owes to the partnership and the other partners are the duty of loyalty and the duty of care, as set forth in subsections (2) and (3). (2) A partner\u2019s duty of loyalty to the partnership and the other partners is limited to the following: \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 620.8404, a partner's fiduciary duties are limited to loyalty and care.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8404.html\", \"cite\": \"Fla. Stat. \u00a7 620.8404\", \"heading\": \"General standards of partner\u2019s conduct.\", \"support\": \"To account to the partnership and hold as trustee for the partnership any property, profit, or benefit derived by the partner in the conduct and winding up of the partnership business\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) A partner\u2019s duty of loyalty to the partnership and the other partners is limited to the following: (a) To account to the partnership and hold as trustee for the partnership any property, profit, or benefit derived by the partner in the conduct and winding up of the partnership business or derived from a use by the partner of partnership property, including the appropriation of a partnership opportunity; (b) To refrain from dealing with the partnership in the conduct or winding up of the partnership business as or on behalf of a party having an interest adverse to the partnership; \u2026\", \"sentence\": \"The duty of loyalty includes accounting for profit from partnership business.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0620\/Sections\/0620.8404.html\", \"cite\": \"Fla. Stat. \u00a7 620.8404\", \"heading\": \"General standards of partner\u2019s conduct.\", \"support\": \"refraining from engaging in grossly negligent or reckless conduct, intentional misconduct, or a knowing violation of law\", \"verdict\": \"supported\", \"law_text\": \"\u2026 and (c) To refrain from competing with the partnership in the conduct of the partnership business before the dissolution of the partnership. (3) A partner\u2019s duty of care to the partnership and the other partners in the conduct and winding up of the partnership business is limited to refraining from engaging in grossly negligent or reckless conduct, intentional misconduct, or a knowing violation of law. (4) A partner shall discharge the duties to the partnership and the other partners under this act or under the partnership agreement and exercise any rights consistently with the obligation of good faith and fair dealing. \u2026\", \"sentence\": \"The duty of care covers grossly negligent or reckless conduct, intentional misconduct, and knowing violations of law.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.04091.html\", \"cite\": \"Fla. Stat. \u00a7 605.04091\", \"heading\": \"Standards of conduct for members and managers.\", \"support\": \"Each manager of a manager-managed limited liability company and member of a member-managed limited liability company owes fiduciary duties of loyalty and care to the limited liability company and members of the limited liability company.\", \"verdict\": \"supported\", \"law_text\": \"(1) Each manager of a manager-managed limited liability company and member of a member-managed limited liability company owes fiduciary duties of loyalty and care to the limited liability company and members of the limited liability company. (2) The duty of loyalty includes: (a) Accounting to the limited liability company and holding as trustee for it any property, profit, or benefit derived by the manager or member, as applicable: 1. In the conduct or winding up of the company\u2019s activities and affairs; 2. \u2026\", \"sentence\": \"LLC managers and members owe similar duties under Fla. Stat. \u00a7 605.04091.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.04091.html\", \"cite\": \"Fla. Stat. \u00a7 605.04091\", \"heading\": \"Standards of conduct for members and managers.\", \"support\": \"shall discharge their duties and obligations under this chapter or under the operating agreement and exercise any rights consistently with the obligation of good faith and fair dealing\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (4) A manager of a manager-managed limited liability company and a member of a member-managed limited liability company shall discharge their duties and obligations under this chapter or under the operating agreement and exercise any rights consistently with the obligation of good faith and fair dealing. (5) A manager of a manager-managed limited liability company or a member of a member-managed limited liability company does not violate a duty or obligation under this chapter or under the operating agreement solely because the manager\u2019s or member\u2019s conduct furthers the manager\u2019s or member\u2019s own interest. \u2026\", \"sentence\": \"They must also act with good faith and fair dealing.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0702.html\", \"cite\": \"Fla. Stat. \u00a7 605.0702\", \"heading\": \"Grounds for judicial dissolution.\", \"support\": \"if the operating agreement contains a deadlock sale provision that has been initiated before the time that the court determines that the grounds for judicial dissolution exist under subparagraph (1)(b)5., then such deadlock sale provision applies to the resolution of such deadlock\", \"verdict\": \"supported\", \"law_text\": \"\u2026 f the limited liability company are deadlocked in the management of the limited liability company\u2019s activities and affairs, the members are unable to break the deadlock, and irreparable injury to the limited liability company is threatened or being suffered, if the operating agreement contains a deadlock sale provision that has been initiated before the time that the court determines that the grounds for judicial dissolution exist under subparagraph (1)(b)5., then such deadlock sale provision applies to the resolution of such deadlock instead of the court entering an order of judicial dissolution or an order directing the purchase of petitioner\u2019s interest under s. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.0702, that provision can resolve the deadlock if it starts before the court finds grounds for dissolution.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0702.html\", \"cite\": \"Fla. Stat. \u00a7 605.0702\", \"heading\": \"Grounds for judicial dissolution.\", \"support\": \"In a proceeding by a manager or member to dissolve the limited liability company if it is established that:\", \"verdict\": \"supported\", \"law_text\": \"\u2026 The enumeration in subparagraphs 1. and 2. of grounds for involuntary dissolution does not exclude actions or special proceedings by the Department of Legal Affairs or a state official for the annulment or dissolution of a limited liability company for other causes as provided in another law of this state. (b) In a proceeding by a manager or member to dissolve the limited liability company if it is established that: 1. The conduct of all or substantially all of the company\u2019s activities and affairs is unlawful; 2. It is not reasonably practicable to carry on the company\u2019s activities and affairs in conformity with the articles of organization and the operating agreement; 3. \u2026\", \"sentence\": \"The same section lets a member ask the court to dissolve an LLC.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0702.html\", \"also\": [{\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0702.html\", \"cite\": \"Fla. Stat. \u00a7 605.0702\", \"heading\": \"Grounds for judicial dissolution.\", \"support\": \"The limited liability company\u2019s assets are being misappropriated or wasted, causing injury to the limited liability company\", \"law_text\": \"\u2026 2. It is not reasonably practicable to carry on the company\u2019s activities and affairs in conformity with the articles of organization and the operating agreement; 3. The managers or members in control of the company have acted, are acting, or are reasonably expected to act in a manner that is illegal or fraudulent; 4. The limited liability company\u2019s assets are being misappropriated or wasted, causing injury to the limited liability company, or in a proceeding by a member, causing injury to one or more of its members; or 5. \u2026\"}], \"cite\": \"Fla. Stat. \u00a7 605.0702\", \"heading\": \"Grounds for judicial dissolution.\", \"support\": \"The managers or members in control of the company have acted, are acting, or are reasonably expected to act in a manner that is illegal or fraudulent;\", \"verdict\": \"supported\", \"law_text\": \"\u2026 1. The conduct of all or substantially all of the company\u2019s activities and affairs is unlawful; 2. It is not reasonably practicable to carry on the company\u2019s activities and affairs in conformity with the articles of organization and the operating agreement; 3. The managers or members in control of the company have acted, are acting, or are reasonably expected to act in a manner that is illegal or fraudulent; 4. The limited liability company\u2019s assets are being misappropriated or wasted, causing injury to the limited liability company, or in a proceeding by a member, causing injury to one or more of its members; or 5. \u2026\", \"sentence\": \"Grounds include illegal or fraudulent conduct by those in control, and misappropriation or waste of company assets that causes injury.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0702.html\", \"cite\": \"Fla. Stat. \u00a7 605.0702\", \"heading\": \"Grounds for judicial dissolution.\", \"support\": \"A circuit court may dissolve a limited liability company:\", \"verdict\": \"supported\", \"law_text\": \"(1) A circuit court may dissolve a limited liability company: (a) In a proceeding by the Department of Legal Affairs if it is established that: 1. The limited liability company obtained its articles of organization through fraud; or 2. The limited liability company has continued to exceed or abuse the authority conferred upon it by law. The enumeration in subparagraphs 1. and 2. \u2026\", \"sentence\": \"A dissolution case is filed in circuit court.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0703.html\", \"cite\": \"Fla. Stat. \u00a7 605.0703\", \"heading\": \"Procedure for judicial dissolution; alternative remedies.\", \"support\": \"Venue for a proceeding brought under s. 605.0702 lies in the circuit court of the county where the limited liability company\u2019s principal office is or was last located\", \"verdict\": \"supported\", \"law_text\": \"(1) Venue for a proceeding brought under s. 605.0702 lies in the circuit court of the county where the limited liability company\u2019s principal office is or was last located, as shown by the records of the department, or, if there is or was no principal office in this state, in the circuit court of the county where the company\u2019s registered office is or was last located. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.0703, venue lies in the county where the principal office is or was last located.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0703.html\", \"cite\": \"Fla. Stat. \u00a7 605.0703\", \"heading\": \"Procedure for judicial dissolution; alternative remedies.\", \"support\": \"appoint a receiver or custodian pendente lite with all powers and duties the court directs, take other action required to preserve the limited liability company\u2019s assets wherever located\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (2) It is not necessary to make members parties to a proceeding to dissolve a limited liability company unless relief is sought against such members individually. (3) A court in a proceeding brought to dissolve a limited liability company may issue injunctions, appoint a receiver or custodian pendente lite with all powers and duties the court directs, take other action required to preserve the limited liability company\u2019s assets wherever located, and carry on the business of the limited liability company until a full hearing can be held. (4) In a proceeding brought under s. 605.0702, the court may, upon a showing of sufficient merit to warrant such a remedy: (a) Appoint a receiver or custodian under s. 605.0704; \u2026\", \"sentence\": \"While the case is pending, the court may appoint a receiver or custodian to protect company assets.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0706.html\", \"cite\": \"Fla. Stat. \u00a7 605.0706\", \"heading\": \"Election to purchase instead of dissolution.\", \"support\": \"the company may elect, or, if it fails to elect, one or more other members may elect, to purchase the entire interest of the petitioner in the company at the fair value of the interest\", \"verdict\": \"supported\", \"law_text\": \"\u2026 605.0702(1)(b), the company may elect, or, if it fails to elect, one or more other members may elect, to purchase the entire interest of the petitioner in the company at the fair value of the interest. An election pursuant to this section is irrevocable unless the court determines that it is equitable to set aside or modify the election. (2) An election to purchase pursuant to this section may be filed with the court within 90 days after the filing of the petition by the petitioning member under s. 605. \u2026\", \"sentence\": \"If a member files for dissolution, the company or other members may elect to buy that member's interest.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0600-0699\/0605\/Sections\/0605.0706.html\", \"cite\": \"Fla. Stat. \u00a7 605.0706\", \"heading\": \"Election to purchase instead of dissolution.\", \"support\": \"may be filed with the court within 90 days after the filing of the petition by the petitioning member under s. 605.0702(1)(b) or at such later time as the court may allow\", \"verdict\": \"supported\", \"law_text\": \"\u2026 An election pursuant to this section is irrevocable unless the court determines that it is equitable to set aside or modify the election. (2) An election to purchase pursuant to this section may be filed with the court within 90 days after the filing of the petition by the petitioning member under s. 605.0702(1)(b) or at such later time as the court may allow. If the election to purchase is filed, the company shall within 10 days thereafter give written notice to all members, other than the petitioning member. \u2026\", \"sentence\": \"Under Fla. Stat. \u00a7 605.0706, the election may be filed within 90 days after the petition, unless the court allows more time.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0095\/Sections\/0095.11.html\", \"cite\": \"Fla. Stat. \u00a7 95.11\", \"heading\": \"Limitations other than for the recovery of real property.\", \"support\": \"Actions other than for recovery of real property shall be commenced as follows:\", \"verdict\": \"supported\", \"law_text\": \"Actions other than for recovery of real property shall be commenced as follows: (1) WITHIN TWENTY YEARS.\u2014An action on a judgment or decree of a court of record in this state. (2) WITHIN FIVE YEARS.\u2014 (a) An action on a judgment or decree of any court, not of record, of this state or any court of the United States, any other state or territory in the United States, or a foreign country. \u2026\", \"sentence\": \"**How long do I have to sue a business partner?** Florida sets time limits under \u00a7 95.11.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0095\/Sections\/0095.11.html\", \"cite\": \"Fla. Stat. \u00a7 95.11\", \"heading\": \"Limitations other than for the recovery of real property.\", \"support\": \"(j) A legal or equitable action on a contract, obligation, or liability not founded on a written instrument\", \"verdict\": \"supported\", \"law_text\": \"\u2026 \u2026 (i) A legal or equitable action founded on fraud. (j) A legal or equitable action on a contract, obligation, or liability not founded on a written instrument, including an action for the sale and delivery of goods, wares, and merchandise, and on store accounts. (k) An action to rescind a contract. (l) An action for money paid to any governmental authority by mistake or inadvertence. \u2026 (o) Any action not specifically provided for in these statutes. \u2026\", \"sentence\": \"A claim on a contract not in writing generally must start within four years.\"}, {\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0095\/Sections\/0095.11.html\", \"also\": [{\"url\": \"https:\/\/www.leg.state.fl.us\/statutes\/index.cfm?App_mode=Display_Statute&URL=0000-0099\/0095\/Sections\/0095.11.html\", \"cite\": \"Fla. Stat. \u00a7 95.11\", \"heading\": \"Limitations other than for the recovery of real property.\", \"support\": \"(j) A legal or equitable action on a contract, obligation, or liability not founded on a written instrument\", \"law_text\": \"\u2026 \u2026 (i) A legal or equitable action founded on fraud. (j) A legal or equitable action on a contract, obligation, or liability not founded on a written instrument, including an action for the sale and delivery of goods, wares, and merchandise, and on store accounts. (k) An action to rescind a contract. (l) An action for money paid to any governmental authority by mistake or inadvertence. \u2026 (o) Any action not specifically provided for in these statutes. \u2026\"}], \"cite\": \"Fla. Stat. \u00a7 95.11\", \"heading\": \"Limitations other than for the recovery of real property.\", \"support\": \"(b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument\", \"verdict\": \"supported\", \"law_text\": \"\u2026 (1) WITHIN TWENTY YEARS.\u2014An action on a judgment or decree of a court of record in this state. (2) WITHIN FIVE YEARS.\u2014 (a) An action on a judgment or decree of any court, not of record, of this state or any court of the United States, any other state or territory in the United States, or a foreign country. (b) A legal or equitable action on a contract, obligation, or liability founded on a written instrument, except for an action to enforce a claim against a payment bond, which shall be governed by the applicable provisions of paragraph (6)(e), s. 255.05(10), s. 337.18(1), or s. 713.23(1)(e), and except for an action for a deficiency judgment governed by paragraph (6)(g). \u2026 (d) An action alleging a willful violation of s. 448.110. \u2026\", \"sentence\": \"Florida law sets separate deadlines for bringing a lawsuit on a written contract and on an oral or unwritten contract.\"}], \"languages\": [{\"code\": \"en\", \"post_id\": 241}, {\"code\": \"es\", \"post_id\": 242}]}","chg_sendback":"","chg_canonical":"","chg_lang":"","chg_hreflang":"[]","chg_jsonld":"[{\"about\": [\"Dishonest business partners\", \"Breach of fiduciary duty between co-owners\", \"Florida partnership and LLC law\", \"Buyouts and expulsion of business partners\", \"Judicial dissolution of a business\"], \"author\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/kewlegal.com\/resources\/#organization\", \"name\": \"KEW Legal\", \"url\": \"https:\/\/kewlegal.com\/\"}, \"@context\": \"https:\/\/schema.org\", \"audience\": {\"@type\": \"Audience\", \"audienceType\": \"Business owners, co-owners, and investors who suspect or have discovered misconduct by a business partner\"}, \"headline\": \"How to Deal With a Dishonest Business Partner in Florida\", \"publisher\": {\"@type\": \"Organization\", \"@id\": \"https:\/\/kewlegal.com\/resources\/#organization\", \"name\": \"KEW Legal\", \"url\": \"https:\/\/kewlegal.com\/\"}, \"speakable\": {\"@type\": \"SpeakableSpecification\", \"cssSelector\": [\"article > p:first-of-type\", \".wp-block-details p\", \"article > h1\"]}, \"areaServed\": [{\"name\": \"Miami-Dade County, Florida\", \"@type\": \"AdministrativeArea\"}, {\"name\": \"Broward County, Florida\", \"@type\": \"AdministrativeArea\"}], \"inLanguage\": \"en-US\", \"description\": \"A plain-language, step-by-step guide to the warning signs of a dishonest business partner and the options under Florida partnership and LLC law, including records preservation, written demands, mediation, buyouts, dissolution, and litigation.\", \"reviewedBy\": {\"@type\": \"Person\", \"name\": \"Natalie Martinez\", \"jobTitle\": \"Associate Attorney\", \"sameAs\": [\"https:\/\/www.floridabar.org\/directories\/find-mbr\/profile\/?num=1003311\"]}, \"@type\": \"Article\", \"image\": \"https:\/\/kewlegal.com\/resources\/wp-content\/uploads\/2026\/10\/empty-shelves-and-a-closed-sign-inside-a-small-storefront-af-photo.jpg\"}, {\"@context\": \"https:\/\/schema.org\", \"@type\": \"BreadcrumbList\", \"itemListElement\": [{\"@type\": \"ListItem\", \"position\": 1, \"name\": \"Home\", \"item\": \"https:\/\/kewlegal.com\/resources\/\"}, {\"@type\": \"ListItem\", \"position\": 2, \"name\": \"Outside General Counsel For Businesses\", \"item\": \"https:\/\/kewlegal.com\/resources\/outside-general-counsel-for-businesses\/\"}, {\"@type\": \"ListItem\", \"position\": 3, \"name\": \"How to Deal With a Dishonest Business Partner in Florida\", \"item\": \"https:\/\/kewlegal.com\/resources\/outside-general-counsel-for-businesses\/how-to-deal-with-a-dishonest-business-partner\/\"}]}]","chg_meta_description":"Dishonest business partner in Florida? 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