When a business partnership starts to break down, it can feel like everything is on the line — your income, your reputation, and something you worked hard to build. If your partner has gone silent, started making decisions without you, or is actively pushing you out, you have every right to ask whether you can take legal action. The answer often depends on what actually happened and whether it crosses a legal line.
This guide breaks down the most common grounds for suing a business partner in Colorado, so you can figure out where you stand. If you think your situation crosses that line, Baker Law Group, PLLC can help you understand your options.
What Legally Counts as Grounds for Suing a Business Partner
Not every bad business relationship leads to a lawsuit. But when a partner’s actions cross from frustrating into legally actionable, you have options. Colorado courts — including those in Denver’s 2nd Judicial District — recognize several causes of action between business partners.
The most common grounds for suing a business partner include:
- Breach of fiduciary duty (your partner put their own interests ahead of the business)
- Breach of contract (they violated the terms of your partnership agreement)
- Fraud or misrepresentation (they lied to you or hid material information)
- Conversion or theft of business assets
- Tortious interference with business operations
- Unjust enrichment
Colorado’s Uniform Partnership Act (C.R.S. § 7-64-101 et seq.) governs how partnerships operate in the state and sets the legal baseline for partner duties, including the duty of loyalty and the duty of care. These are not just formalities — they are enforceable obligations.
Can I Sue My Business Partner for Abandonment
Yes, in many cases you can sue your business partner for abandonment, but the legal path depends on your specific setup. If your partner walked away from their responsibilities, stopped contributing, or simply disappeared while the business was still operating, their absence may constitute a breach of your partnership agreement or a violation of their fiduciary duties under Colorado law.
Abandonment becomes especially serious when:
- The business suffers financial harm as a direct result
- Clients or contracts were lost because of the partner’s absence
- You were left to personally cover debts or liabilities they should have shared
If you are dealing with this situation in Denver or anywhere in Colorado, document everything. Emails, financial records, and any written communication can become critical evidence later.
My Partner Is Making Decisions Without Me
This is one of the most common complaints among business owners, and it is also one of the clearest grounds for suing a business partner. When one partner begins making major business decisions unilaterally — signing contracts, taking on debt, hiring, firing, or redirecting funds — they may be acting outside the scope of their authority.
Under Colorado law, partners generally have equal rights in the management of the partnership unless your agreement says otherwise. If your partner is making decisions without you, they could be:
- Breaching the partnership agreement
- Violating their duty of loyalty
- Exposing the business (and you personally) to liability you never agreed to
This situation often escalates quickly. Getting ahead of it early with legal guidance can make a significant difference in outcomes.
Partner Forcing You Out of Business
If your partner is forcing you out of the business, that is a serious legal matter. Whether it is through freezing you out of accounts, locking you out of operations, cutting off your access to financial records, or pressuring you to sell your interest below value — these actions may give you grounds to sue.
Colorado courts have addressed partner forcing out scenarios under several theories, including breach of fiduciary duty, wrongful dissociation, and breach of contract. The strength of your claim depends heavily on how your partnership is structured and whether you have a written agreement that governs these situations.
A Denver business attorney can evaluate whether your partner’s actions meet the legal threshold and what remedies may be available to you — including injunctive relief to stop the conduct while the case is pending.
The Role of Your Partnership Agreement
Your partnership agreement is often the most important document in any dispute. It governs what each partner can and cannot do, how decisions get made, what happens when one partner wants out, and how disputes are resolved. If your partner violated the terms of that agreement, it strengthens your grounds for suing.
If you never had a written agreement, Colorado’s default partnership rules under the Uniform Partnership Act apply. That is not necessarily a dead end, but it does complicate things.
When to Call a Business Lawyer in Denver
If any of the situations above sound familiar, now is the time to act — not later. Business disputes tend to get more complicated the longer they go unaddressed. Evidence disappears, financial records get harder to trace, and partners take steps that are difficult to reverse.
Baker Law Group, PLLC works with business owners throughout Colorado who are facing exactly these kinds of situations. The firm takes a strategic approach — not reactive — and focuses on protecting your position from the first conversation. Whether you need to understand your legal options, stop your partner from taking further action, or prepare for litigation, having experienced counsel in your corner matters.
If you are a business owner in Denver or anywhere in Colorado and you need a business attorney near you, Baker Law Group, PLLC is ready to help you take the right next step.
Take Action Before the Situation Gets Worse
Waiting rarely improves a bad partnership situation. If you believe you have grounds for suing a business partner — whether for abandonment, unauthorized decisions, or being forced out — a direct conversation with a qualified attorney can give you clarity fast.
Contact Baker Law Group, PLLC today to schedule a consultation. Come in with your questions and leave with a plan.
