Breach of Contract

[kobar]

What is the name of your state (only U.S. law)? California

Hello, I entered into a contract with my cousin and her husband to buy a shop from them. It was a very informal contract, basically just outlining the terms of what is going to happen. There is no signature. The terms were that they were going to move out of state, and I was going to run the business in its entirety with the exception of filing taxes. The business was to remain in my cousin in laws name until it was fully paid off which would be 5 years. I was paid as an employee. After a year, my cousin and her husband divorced and moved back to California where after some disagreements I had with him not related to the business, he took me off the bank accounts and vendor lists and shut me out of the business without even giving me my last paycheck.

According to the contract at the point that I was kicked out I had paid him and his wife between $40,000 and $50,000. He just filed bankruptcy. He is paying all his employees cash under the table, and he isn't keeping track of any sales besides credit card sales (which is probably less than half). As far as I know he doesn't have any assets saved up of any kind. No large bank accounts, no real estate. I read about Till Tapping and in my minute knowledge of the law that seems like the only way to collect a judgement. Basically what I want to know is if it would be worth going for the full amount that I paid into it by hiring a lawyer or if I should go to small claims and be happy with the $10k maximum or if I should do anything at all. I already filed with the Labor Board about not getting my last paycheck and I'm waiting still to hear back on that. Thank you for any input.

 

[tranquility]

What is the name of your state (only U.S. law)? California

Hello, I entered into a contract with my cousin and her husband to buy a shop from them. It was a very informal contract, basically just outlining the terms of what is going to happen. There is no signature. The terms were that they were going to move out of state, and I was going to run the business in its entirety with the exception of filing taxes. The business was to remain in my cousin in laws name until it was fully paid off which would be 5 years. I was paid as an employee. After a year, my cousin and her husband divorced and moved back to California where after some disagreements I had with him not related to the business, he took me off the bank accounts and vendor lists and shut me out of the business without even giving me my last paycheck.

According to the contract at the point that I was kicked out I had paid him and his wife between $40,000 and $50,000. He just filed bankruptcy. He is paying all his employees cash under the table, and he isn't keeping track of any sales besides credit card sales (which is probably less than half). As far as I know he doesn't have any assets saved up of any kind. No large bank accounts, no real estate. I read about Till Tapping and in my minute knowledge of the law that seems like the only way to collect a judgement. Basically what I want to know is if it would be worth going for the full amount that I paid into it by hiring a lawyer or if I should go to small claims and be happy with the $10k maximum or if I should do anything at all. I already filed with the Labor Board about not getting my last paycheck and I'm waiting still to hear back on that. Thank you for any input.

You have a complex situation that is accentuated by the BK filing. How much does he have in assets? I would make a claim against the BK estate for the full amount you have paid and not sue for the amount as there is a stay against collection actions because of the BK. But, even the claim is a little speculative. I would see a good attorney and get his recommendation on the course to follow. You may be in a bad place here and might not get too much at the end of the day. Still, it would be worth the cost to see what a person who can interact with you and gets the facts to see where to go from here.

 

[latigo]

What is the name of your state (only U.S. law)? California

Hello, I entered into a contract with my cousin and her husband to buy a shop from them. It was a very informal contract, basically just outlining the terms of what is going to happen. There is no signature.

The terms were that they were going to move out of state, and I was going to run the business in its entirety with the exception of filing taxes. The business was to remain in my cousin in laws name until it was fully paid off which would be 5 years. I was paid as an employee.

After a year, my cousin and her husband divorced and moved back to California where after some disagreements I had with him not related to the business, he took me off the bank accounts and vendor lists and shut me out of the business without even giving me my last paycheck.

According to the contract at the point that I was kicked out I had paid him and his wife between $40,000 and $50,000. He just filed bankruptcy. He is paying all his employees cash under the table, and he isn't keeping track of any sales besides credit card sales (which is probably less than half).

As far as I know he doesn't have any assets saved up of any kind. No large bank accounts, no real estate. I read about Till Tapping and in my minute knowledge of the law that seems like the only way to collect a judgment.

Basically what I want to know is if it would be worth going for the full amount that I paid into it by hiring a lawyer or if I should go to small claims and be happy with the $10k maximum or if I should do anything at all.

I already filed with the Labor Board about not getting my last paycheck and I'm waiting still to hear back on that. Thank you for any input.

So the story is that you paid your cousin and her husband "between $40K and $50K", right? (Are you certain it wasn't between $30K and $40K or maybe between $50K and $60K or in some other range of $10K increments?

And "according to the contract" you paid this chunk of $$$ without having any writings, documents, receipts or evidence whatsoever as proof of what the hell the money was for?

But now you are torn between getting all this unknown $$$ back or just settle for your unpaid wages.

Which raises another anomaly. If you were buying the shop, why would the seller be owing you wages? A seller who had already received $$$ " according to the contract".

Did you inform the "Labor Board" that were making a claim for unpaid wages supposedly earned by working in a retail business that you were in the process of buying?

It also occurs to me that if you did indeed pay out all of said $$$ towards the purchase price of the business - a business which seems to be still up and running - that you might be asking about your legal rights with respect to specific performance of the verbal agreement.

Pretty strange, if you ask me.

 

[Sloop John D]

So the story is that you paid your cousin and her husband "between $40K and $50K", right? (Are you certain it wasn't between $30K and $40K or maybe between $50K and $60K or in some other range of $10K increments?

And "according to the contract" you paid this chunk of $$$ without having any writings, documents, receipts or evidence whatsoever as proof of what the hell the money was for?

But now you are torn between getting all this unknown $$$ back or just settle for your unpaid wages.

Which raises another anomaly. If you were buying the shop, why would the seller be owing you wages? A seller who had already received $$$ " according to the contract".

Did you inform the "Labor Board" that were making a claim for unpaid wages supposedly earned by working in a retail business that you were in the process of buying?

It also occurs to me that if you did indeed pay out all of said $$$ towards the purchase price of the business - a business which seems to be still up and running - that you might be asking about your legal rights with respect to specific performance of the verbal agreement.

Pretty strange, if you ask me.

I don't think he said most of those things. It's also important to remember that people usually post a summarized version of the events on this board. The fact that a poster leaves out a few details doesn't mean they aren't there or can't be proven during the course of litigation.