I Have Gone Into a Joint Venture and Been Let Down – What Are My Options?
If you’ve entered a joint venture and been let down by your joint venture partner, you’re probably disappointed and frustrated. Worse still, you may be facing losses that you need to recover. You are not alone. Our nationally recognised commercial litigation team have acted in hundreds of complex disputes, including issues arising from joint-ventures gone wrong. We move quickly to protect your position, resolve issues wherever possible, and pursue recovery when needed. We’d love to assist you. What might some initial steps look like in this type of dispute? Read more below to find out. Contact our commercial litigation team for specific advice tailored to your situation and dispute.
Review the Agreement
Review the joint venture agreement carefully to confirm each party’s obligations, timescales, funding commitments, decision‑making processes, and any deadlock or exit provisions. Pay particular attention to dispute resolution clauses, notice requirements, and contractual remedies for breach.. If there is no written agreement, the court can still assess the arrangement by looking at conduct, communications, and the parties’ intentions. However, evidential issues are more complex—so early advice is crucial.
Preserve Evidence Early
From the outset, keep a clear record of emails, messages, board minutes, financial contributions, and any approvals or consents. Good evidence strengthens your negotiating leverage and your position if court proceedings are issued.
Early Settlement & ADR
Positioning for potential settlement negotiations is important and doesn’t just happen. If you’re in a dispute and still can’t reach an agreement, you might explore alternative dispute resolution (ADR) through processes such as negotiation, mediation or arbitration. Your joint venture agreement might require you to do so, but either way, these can be effective ways to resolve matters without pursuing formal proceedings. Importantly, however, how you position yourself before embarking on ADR, is key. Understanding your own position- the strengths and weaknesses of your case; and ensuring your positioning is on the front foot, are key to giving ADR the best possible prospects of success. Otherwise ADR can lead to wasted time and costs, and missed opportunities.
Obtain Legal Advice
Seek legal advice from litigation specialists experienced in your type of dispute as soon as possible to understand your options. We can:
- assess the strength of your position and the commercial outcomes available;
- advise on immediate protective steps (for example, contractual notices, standstill agreements, or urgent injunctions in appropriate cases);
- map a strategy that aligns with your objectives—whether that is salvaging the venture, structuring an exit, or pursuing recovery; and
- prepare the documents you need to advance negotiations, pursue ADR, or issue proceedings.
End the Relationship & Consider Seeking Damages
You may be able to end the relationship immediately and seek damages for breach of contract if your partner fails to comply with their obligations by, for example, failing to put the agreed-upon funds into the business.
If you don’t have a written agreement, you can still consider bringing a claim, but it may become more complex as the court will need to assess things like conduct, communications, and intentions.
Start Legal Proceedings
Where negotiation or ADR does not resolve matters, issuing a claim may be necessary to recover losses or secure declaratory relief. Before you issue, it is important to:
- Comply with any pre‑action requirements.
- Quantify your losses and consider expert evidence where needed.
- Evaluate enforcement prospects—there is little value in a judgment you cannot enforce.
If you are in a situation where you’ve been in (or are in) a joint venture, and something has gone wrong, our commercial litigation team are well placed to assist and to advise you. We act in many of these disputes nationally and would to assist you.
