Partner backed out of business deal

[SourBusiness]

I was a partner in a business deal that went very sour. It turns out my partner lied to me and misrepresented himself as part of a company that wanted to do business (he is part of a LARGE family owned food processing plant). We were to do business overseas, but he backed out at the last minute, stating that he "just couldn't do it at this time." We, and the overseas partners have signed papers, and even have the overseas government official's signatures. The father had no idea what the son's plans were regarding this business.

I am out money that I fronted to get this off the ground. Not only that, but I spent 3 months of every waking hour on this project. We have many signed papers stating partnerships, equity break-down, and personal roles in the business.

1. Do I have any recourse? Can I get my out of pocket expenses back? Can I get additional monies for my time spent?

2. Can I sue the family business? As far as I and the overseas partner knew, the family business was backing the entire project. We even have Dunn and Bradstreet reports for the family business.

Thank you in advance. Any bit of advice is MUCH appreciated.

By the way, this happened in California, and the overseas partner is in Russia.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by SourBusiness:
I was a partner in a business deal that went very sour. It turns out my partner lied to me and misrepresented himself as part of a company that wanted to do business (he is part of a LARGE family owned food processing plant). We were to do business overseas, but he backed out at the last minute, stating that he "just couldn't do it at this time." We, and the overseas partners have signed papers, and even have the overseas government official's signatures. The father had no idea what the son's plans were regarding this business.

I am out money that I fronted to get this off the ground. Not only that, but I spent 3 months of every waking hour on this project. We have many signed papers stating partnerships, equity break-down, and personal roles in the business.

1. Do I have any recourse? Can I get my out of pocket expenses back? Can I get additional monies for my time spent?

2. Can I sue the family business? As far as I and the overseas partner knew, the family business was backing the entire project. We even have Dunn and Bradstreet reports for the family business.

Thank you in advance. Any bit of advice is MUCH appreciated.

By the way, this happened in California, and the overseas partner is in Russia.<HR></BLOCKQUOTE>

You need to have a CA attorney review the docs that you have to see if there is enough evidence and if worthwhile to sue the company and the son of a _____.

 

[JETX]

First considerations:
How binding was this partnership?
Is there a partnership agreement?
If so, what does the partnership agreement say regarding breach of one of the partners?

If there is no 'partnership' agreement, then you will have a much harder time and have to prove that a 'real partnership' existed.

The balance of the case rests on your responses to the above questions. IF you had a valid partnership, then the partner MIGHT be liable for the percentage expenses of the partnership (for example, if he was a 25% partner, then he might be liable for 25% of the expenses).

So, answers are:
Q) "Do I have any recourse?"
A) Maybe, see above.

Q) "Can I get my out of pocket expenses back?"
A) Possibly a percentage, maybe more depending on the partnership agreement.

Q) "Can I get additional monies for my time spent?"
A) Probably not. Unless the agreement discusses compensation for time spent.

Q) "Can I sue the family business?"
A) Not unless the 'family' was a part of the partnership. Did your partner sign personally, or as a corporate officer of his family business (if so, then your 'real' partner is the family business).

Q) "As far as I and the overseas partner knew, the family business was backing the entire project."
A) Who advised them that the 'family business' was a part? If you did, and they really aren't, you are in deep caca. If you have some documentation saying that the 'family' business is a partner, then that is different.

Q) "We even have Dunn and Bradstreet reports for the family business."
A) So, anyone can run D&B's on any company. This proves nothing.

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!