One Partner Started New Business

[Ready_in_CA]

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

Two partners of a corporation had a falling out and could not come to an agreement regarding one buying out the other or dissolving the business, so it is unresolved. In the meantime, partner #1 started a new business, but in actuality is operating the same business - same service, same phone number, same customers, same name with a couple of extra words tacked on to the end of the business name. Does she (partner #1) have the right to do this and if not, what course of action would you suggest to partner #2?

This is a small, home-based business where partner #1 handled all of the financials. Partner #2 only found out through another source that a new business license and revised business name was established, as her former business partner no longer communicates with her.

I apologize in advance if I used any incorrect terms - I am posting for someone else and tried to be as clear, but brief, as possible. Thank you!

[RuGa]

If you have a partner who continues business (with the same assets), you can easily sue for your share of the monies received.
Typically you would need an Attorney who would depending upon your wishes either file suit on your behalf or file a "Cease and Desist" letter along with the fact it can easily be seen as 'bad faith'....
As we don't know all the particulars, it is difficult to say for sure, but the above usually holds true anywhere...