California attorney · CA Bar #279869

California partnership dispute attorney

I'm Sergei Tokmakov, a California attorney. If your partner is cutting you out, refusing to share books, self-dealing, or breaching fiduciary duty, the Revised Uniform Partnership Act (Cal. Corp. Code §§ 16101-16962) gives you the right to an accounting, damages for breach of duty, and judicial dissolution and wind-up. I draft the demand letter plus the court-ready accounting-and-dissolution complaint that gets the partner's attention.

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Cal. Corp. Code §§ 16101
Quick answer

California adopted the Revised Uniform Partnership Act in 1996, codified at Cal. Corp. Code §§ 16101-16962. § 16404 imposes the duties of loyalty, care, and good faith on every partner. § 16405 gives each partner the right to access books and to demand a formal court-supervised accounting. § 16801 lists the grounds for partnership dissolution; § 16807 governs the wind-up procedure. Breach of fiduciary duty supports disgorgement of profits plus damages. The four-year catch-all SOL under CCP § 343 typically controls, with discovery-rule extensions for concealment. Demand + draft complaint from $1,200.

Corp. § 16404
Fiduciary duty owed
Accounting
Corp. § 16405 remedy
Dissolution
Corp. § 16801 available
4-year SOL
Per CCP § 343

What I do for partnership-dispute matters

1

Demand the accounting under Corp. § 16405.

A partner has an absolute right to an accounting. I demand it under § 16405 so the controlling partner cannot stall by selectively producing records.

Corp. § 16405
2

Plead § 16404 fiduciary breach.

Corp. § 16404 imposes duties of loyalty and care. I plead specific breaches (self-dealing, usurpation, conflict of interest) so the case has a damages frame, not just an accounting frame.

Corp. § 16404
3

Build dissolution leverage under § 16801.

Dissolution under § 16801 is the nuclear option. Even raising it in the demand changes the controlling partner's posture because the math on dissolution is rarely friendly.

Corp. § 16801
4

Calendar the 4-year CCP § 343 SOL.

Partnership disputes typically run on CCP § 343's 4-year catch-all SOL. I calendar it. On the $1,200 tier I add the complaint with the accounting and breach counts.

CCP § 343

Why this calls for an attorney, not a partnership-template demand

DIY / template

What a self-written letter misses

  • Cannot demand an accounting under Corp. § 16405
  • Misses Corp. § 16404 fiduciary-duty framing
  • Lets the controlling partner pick the records
  • Has no leverage toward dissolution
Attorney letter

What the attorney letter does

  • Demands the accounting under Corp. § 16405
  • Pleads § 16404 fiduciary-duty breach with specificity
  • Builds the dissolution leverage under § 16801
  • Calendars the four-year catch-all under CCP § 343

Partnership disputes resolve on the accounting, the memo maps the math before either side hires litigation counsel.

The controlling law

Cal. Corp. Code §§ 16101-16962 (Revised Uniform Partnership Act)

California's general-partnership statute

This authority is California's general-partnership statute. RUPA covers formation, partner relations, partner-to-partner duties, dissociation, dissolution, and wind-up. The provisions cited below are the most important for disputes.

Cal. Corp. Code § 16404

Out partner duties

This authority sets out partner duties. § 16404(b) lists the duty of loyalty: account for partnership property, refrain from dealing on behalf of an adverse party, refrain from competing. § 16404(c) lists the duty of care: no grossly negligent or reckless conduct, no intentional misconduct, no knowing violations of law. § 16404(d) imposes the obligation of good faith and fair dealing. These duties cannot be eliminated by agreement (§ 16103), though specific authorized activities can be carved out if not "manifestly unreasonable."

Cal. Corp. Code § 16405

This authority gives each partner the right to access

This authority gives each partner the right to access books and records at the partnership's principal office. § 16405(b) gives each partner the right to a formal accounting, which is a judicial procedure that ends with the court issuing findings on partnership transactions and capital accounts. The accounting is the standard remedy when a partner is being kept in the dark.

Cal. Corp. Code § 16801

Lists events causing dissolution: at-will partner notice, expiration of

Lists events causing dissolution: at-will partner notice, expiration of agreed term, event specified in the agreement, judicial determination that the economic purpose is unreasonably frustrated, partner misconduct making continuation not reasonably practicable, or other circumstances making it impracticable. § 16807 governs the wind-up: collect assets, pay creditors, distribute the remainder according to capital accounts and the agreement.

Cal. Corp. Code § 16701

This authority governs the buy-out price when a partner

This authority governs the buy-out price when a partner is dissociated without dissolving the partnership. The price is the greater of liquidation value or going-concern value, calculated as of the dissociation date with interest. The partnership agreement can override the formula; many agreements include specific buy-sell mechanics.

Cal. Civ. Proc. Code § 343

The four-year catch-all sol that typically

This authority is the four-year catch-all SOL that typically controls partnership claims. Constructive fraud (breach of fiduciary duty with concealment) can run three years from discovery under CCP § 338(d). Breach of the written partnership agreement runs four years under § 337. The applicable statute depends on how the claim is framed.

The disgorgement remedy. When a partner takes a partnership opportunity for personal benefit (e.g., a 50/50 medical practice partner enters a side contract with a key client and pockets the revenue), § 16404(b) supports disgorgement: the offending partner must turn over the profits earned from the breach. Disgorgement is in addition to expectation damages and is the part of partnership law that gets attention. The demand letter calculates the disgorgement exposure based on the specific self-dealing transactions.

What clients send me

Partnership disputes are document-heavy. Before drafting, I ask for:

  • The partnership agreement (any version, including amendments and side letters)
  • Formation documents: Statement of Partnership Authority (§ 16303), DBA filings, fictitious-business-name statements
  • Bank statements for partnership accounts (preferably 24 months back)
  • Tax returns for the partnership (Form 1065) for the relevant years
  • Schedule K-1s issued to each partner
  • Customer or client list with revenue attribution to each partner
  • Specific transactions you believe were self-dealing or competition (dates, amounts, parties, brief description)
  • Email and text correspondence between partners on disputed topics
  • Communications between the offending partner and customers or vendors that suggest competition or diversion
  • Your own contribution history: capital contributions, labor contributions, asset contributions
  • Any written valuations or appraisals of the partnership or its assets
  • Names and contact information for employees, contractors, or accountants who can speak to partnership operations

If documents are incomplete, send what you have. I tell you what is missing and whether the gaps affect the case before quoting.

What I send back

How the engagement runs

1
Send facts

Email a paragraph + key documents.

2
Identify theory

I map the facts to the CA statute.

3
Draft letter

Attorney letter on letterhead.

4
You approve

Two revision rounds included.

5
Send certified

USPS certified + email delivery.

6
Negotiate

Three negotiation responses included.

Choose your path

Start here if

Case memo

$349
  • You want a written legal evaluation first
  • You may refer to a contingency firm later
  • Statute or evidence questions are unsettled
Accept memo - $349
Start here if

Demand + draft lawsuit

$1,200
  • Counterparty needs to see the lawsuit is real
  • Multiple claims or institutional defendant
  • You may file pro se after the demand
Accept package - $1,200

Pricing

Note on active litigation: If the matter is filed and discovery is underway, full commercial-litigation defense or prosecution is scoped separately as a litigation engagement. The $1,200 demand-and-complaint package gets the case mapped and the filing-ready complaint drafted, which is the typical pre-suit posture. Most matters settle before filing.

Frequently asked questions

You
What is the California partnership statute?
S
California adopted the Revised Uniform Partnership Act (RUPA) in 1996, codified at Cal. Corp. Code §§ 16101-16962. RUPA governs general partnerships in California (limited partnerships are under §§ 15900-15912.07; LLCs are under §§ 17701.01 et seq.). The key provisions for disputes are § 16404 (partner duties of loyalty and care), § 16405 (right to access books and to a formal accounting), § 16801 (events causing dissolution), § 16807 (wind-up obligations), and § 16701 (buy-out price calculation when a partner is dissociated).
You
What fiduciary duties do California partners owe each other?
S
Cal. Corp. Code § 16404 imposes three duties: (1) the duty of loyalty (account for partnership property, avoid self-dealing, refrain from competing), (2) the duty of care (no grossly negligent or reckless conduct, intentional misconduct, or knowing violations of law), and (3) the obligation of good faith and fair dealing. These duties cannot be eliminated by the partnership agreement, though the agreement can identify specific activities that do not violate the duty of loyalty if the activities are not "manifestly unreasonable." Breach of these duties is the most common partnership dispute and supports a claim for damages plus disgorgement of profits.
You
What is the right to an accounting?
S
Cal. Corp. Code § 16405(b) gives each partner the right to access partnership books and records and to demand a formal accounting. A formal accounting is a court-supervised review of partnership finances, transactions, and partner contributions and distributions; it is the standard remedy when a partner is being denied financial information or when there is reason to believe the books have been manipulated. The accounting is not just a recordkeeping demand; it is a judicial procedure that ends with the court issuing findings on what is owed between partners.
You
When can a partnership be dissolved?
S
Cal. Corp. Code § 16801 lists the events causing dissolution: notice of withdrawal by a partner in an at-will partnership, expiration of the agreed term, an event specified in the agreement, judicial determination that the economic purpose is unreasonably frustrated, partner misconduct that makes continued business not reasonably practicable, or other circumstances that make continuation impracticable. § 16807 governs the wind-up process: collecting assets, paying creditors, distributing the remainder according to capital accounts and the partnership agreement. A partner can petition for judicial dissolution when the other partner's misconduct is severe enough.
You
What's in the $1,200 demand + complaint package?
S
An attorney demand letter to the offending partner on my letterhead citing § 16404 (fiduciary duties), § 16405 (accounting right), and § 16801 (dissolution grounds) where applicable, with specific allegations and a settlement demand. The package also includes a court-ready California Superior Court complaint drafted for filing if settlement fails. The complaint covers breach of fiduciary duty (with disgorgement remedy), accounting (the § 16405 judicial procedure), partnership dissolution and wind-up (§§ 16801, 16807), and damages. Civil case cover sheet, summons, and a damages prayer are included. Three negotiation responses after delivery.
You
What if there is no written partnership agreement?
S
California recognizes partnerships formed by conduct alone. Cal. Corp. Code § 16202(a) states that "the association of two or more persons to carry on as co-owners a business for profit forms a partnership, whether or not the persons intend to form a partnership." Without a written agreement, RUPA's default rules apply: equal profit shares, equal management rights, and the default fiduciary duties under § 16404. Disputes without a written agreement are common because the partners often disagree about percentages, capital contributions, and exit terms. The demand letter and complaint document the partnership's existence through conduct evidence.
You
How is the buy-out price calculated when a partner leaves?
S
Cal. Corp. Code § 16701 governs the buy-out price when a partner is dissociated without dissolving the partnership. The price is the greater of liquidation value (what the partner would receive if the partnership were wound up) or going-concern value (the partner's share of the business if sold as a continuing operation). The partnership agreement can override the default formula, which is why agreements often include specific buy-sell provisions. In disputed dissociations, the price requires appraisal and often expert testimony. The accounting often runs in parallel with the buy-out valuation.
You
What about partner self-dealing and competition?
S
§ 16404(b) prohibits partners from competing with the partnership and from dealing on behalf of an adverse party. Common patterns: a partner diverts customers to a side business, takes a corporate opportunity for personal benefit, or contracts on behalf of the partnership with a related party at off-market terms. The remedy is disgorgement of profits plus damages plus removal from management. The partnership agreement can authorize specific activities (e.g., "partner X may continue running her separate real-estate business"), but the carve-out must be specific and not "manifestly unreasonable."
You
How are LLCs and partnerships different?
S
An LLC is a separate legal entity governed by the California Revised Uniform Limited Liability Company Act (Corp. Code §§ 17701.01 et seq.). A partnership is governed by RUPA (§§ 16101-16962). LLCs offer limited liability to members; general partnerships do not (each partner is personally liable for partnership debts). The fiduciary-duty framework is similar but the specific statutes differ: § 17704.09 governs LLC member duties, parallel to § 16404 for partnerships. Most modern California closely-held businesses are LLCs; partnerships persist mostly in professional services (law firms, accounting firms, medical practices) and certain real-estate ventures. The demand-letter analysis identifies which framework applies.
You
What is the statute of limitations on partnership claims?
S
Breach of fiduciary duty: four years under CCP § 343 (the catch-all statute) or three years under CCP § 338(d) if framed as fraud. Constructive fraud (breach of fiduciary duty involving misrepresentation or concealment) runs three years from discovery. Breach of contract: four years on written agreements (CCP § 337). Accounting: usually three to four years depending on the underlying claim. The discovery rule is important because partnership misconduct often goes undetected until the partner asks for records or notices distributions are off. The demand letter calendars the SOL based on the specific facts.

Partner cutting you out? Let me draft the demand.

Email me a short paragraph about the partnership, the breaches you have noticed, and what you want to recover. I'll respond same day with a scoped flat-fee quote.

Email owner@terms.law