Are verbal agreements at startup binding?

[no1chebon]

What is the name of your state? Kansas
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October 2000, My wife and I were informed (many, many times) by a business owner and business consultant that if we could
invest $30,000 in this new LLC, our monies would be returned within two-years at the latest. Well, the club caught fire within 6months and burned to the ground. The business is seeking damages from the building owner because of a contractual agreement to re-build right away but eventually we had to re- locate starting-up again in 10months. We are at 2years, have yet to see a penny in this investment and with a court date set
for February on lawsuit, we are trying to convey to this owner that if a decision is made in our favor, the award should be distributed to the shareholders. He says it will put the business at financial fisk if everyone is paid-off. The written 'agreement' does not mention a time-frame nor does it limit payout to end-of-fiscal year but does indicate that the capital must be returned when monies are available to do so. The 'agreement' also states that he is to maintain a capital reserve that any original investment can be returned at any time. As a note, He owns 80% and shareholders own 20% -of course, if he keeps the money 'for the business', he is only helping himself first and us second. Question: Are any of his oral or verbal 'promises' prior to any written agreement binding to any extent?-
Thank you for your assistance...!

 

[CaliCat]

Hm. A written agreement that differs from the oral? Guess which the courts will believe? Unless you can get something as solid proof, it's just a he-said-she-said issue and you will lose.

 

[no1chebon]

Oral agreements and etc.

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common sense. thanx. I'm beginning to believe that this same person may have used some of the start-up money for his primary residence and purchase his wife another vehicle. My question would be How do I convince someone (Attorney Gen.,private attornies, SEC?) that an investigation could be necessary. I'm thinking the fire burnt could have been intentional to protect any paper trail. How do I investigate the accounting books then and up to the present? I did send an email to the
Consumer/public affairs office and they wrote back saying the
Attorney General is only for the states' public officials and laws?
I replied asking why this same AG would intervene against this
said business for other private citizens and force the business to
return some money....it baffles me on what's going on?