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Indemnification Clause Issues — partnership dissolution deadlocked

Started by throwaway_investor_question · Oct 6, 2025 · 1,276 views · 18 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
TI
throwaway_investor_question OP

I'm in a difficult situation and trying to figure out my next steps.

partnership dissolution deadlocked. I've been dealing with this for about 10 weeks now and the situation isn't improving.

The contract was signed 6 months ago. I have a copy of the original agreement. The total amount in dispute is approximately $29,000.

What's the typical outcome in situations like this?

CA
ConsumerAdvocate

I went through almost the exact same thing.

I ended up filing with the appropriate government agency, which cost about $4-8 but saved me a lot more in the long run.

CT
confused_trader_2024

Have you tried reaching out to your state's attorney general? They sometimes have free resources or mediation services.

CP
ContractLaw_Priya Attorney

Attorney here. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the implied covenant of good faith, commercially reasonable.

The practical consideration here is cost vs. potential recovery. For disputes under $10K, small claims court is often the best route.

PB
PatentAgent_Boston

Been there. Here's what I learned.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

WE
worried_employee_2023

NAL, but from what I've read, you should document everything. That said, definitely get a lawyer to look at the specifics.

AF
asking_for_friend_investor_CO

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

RE
RemoteWorker_EU

Been there. Here's what I learned.

In my case, it took about 3-6 months to resolve. The key was having everything documented.

HM
help_me_seller_CO

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

JC
just_curious_seller_FL

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

RL
RetiredLawyer_FL

Not a lawyer, but I have direct experience with this.

I ended up hiring an attorney to send the initial letter, which cost about $2-4 but saved me a lot more in the long run.

DB
desperate_business_owner_today

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

TR
TruckerRights_OH

I've seen this play out several times in my field.

The biggest mistake people make in this situation is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.

AF
asking_for_friend_parent_IL

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

DB
desperate_business_owner_GA

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

WT
worried_trader_FL

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

AB
anon_business_owner_advice

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

NR
NurseUnion_Rep

Not a lawyer, but I have direct experience with this.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

VA
VCAnalyst_SF

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.

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