PARTNER LEAVING BUSINESS W/my $

[rtemerson]

Hello, we are in michigan
My partner and I are 50 50 partners in a business. When we started we both put in equal amouts of money for start up costs. We have been in business for 8 months.
During that time everything has ben devided 50/50.
We signed a 2 year contract that included a $25,000.00 initial deposit. Since we had no other clinents, both of our salaries were paid from this deposit for 4 months. Needless to say the deposit is spent & our client expects work to be done within the next 2 years less our intial deposit.
At this stage my partner has notified me that he is leaving the business and taking half of the deposit(from our client). I am keeping the doors open and fullfilling our 2 year contract, although everything that I do for them will be discounted by half and I must do all work involved by myself. Do I have any legal grounds to sue him for the money that I will be doing the work for.

[This message has been edited by rtemerson (edited September 20, 2000).]

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

Well, in essence you are trying to prevent a breach of contract. He is not fulfilling the business needs. I say you can sue him to make you whole. If both of you signed this agreement with your client, then HE is breaching.

Try attorneypages.com. Some of these attorneys offer free consultations.

Hope this helps.

 

[JETX]

Yes, you could sue him, but why wait.

You need to talk with an attorney now and prevent the 'partner' from taking ANY money from the partnership. After all, as I understand your post, his investment was in the partnership, not in himself. As such, if he walks, he can't take his money with him.

One thing you didn't mention was whether or not you have a partnership agreement. Do you?? What does it say about a partner leaving or withdrawing.

Talk to an attorney now.. before it becomes a much larger issue.

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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!

 

[rtemerson]

we only had verbal partnership agreement 50/50: he does the designs and I do the programming..nothing was stated in writing. now I must do both and get paid half the $$$....thank you... <BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Halket:
Yes, you could sue him, but why wait.

You need to talk with an attorney now and prevent the 'partner' from taking ANY money from the partnership. After all, as I understand your post, his investment was in the partnership, not in himself. As such, if he walks, he can't take his money with him.

One thing you didn't mention was whether or not you have a partnership agreement. Do you?? What does it say about a partner leaving or withdrawing.

Talk to an attorney now.. before it becomes a much larger issue.

<HR></BLOCKQUOTE>

 

[Tracey]

You don't get paid only 1/2 the money. When P said he was leaving, he severed the p'ship. You must now wind up the p'ship. This includes: pay existing debts, satisfy existing contracts, retain sufficient assets to do so, and distribute any surplus $$ OR charge P for 1/2 of any shortfall. You will also have to notify all current clients/vendors/contacts that the p'ship is dissolved & P no longer speaks for you. If both of you signed the contract, P leaving may also constitute a breach of contract & you'll need to deal with that too. Welcome to your worst nightmare!

Grab all the money in any accounts & move it 'to protect the status quo'. Change the locks & passwords for the same reason. Keep meticulous records of your actions so you can show good faith when this gets to court. Notify the client NOT to refund any deposit until the p'ship wind up has been settled. P is entitled to some of the profit from the extising contract, but not all. You absolutely need a lawyer on this one. I forsee temporary restraining orders galore....

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.