partnership NIGHTmare!

[snoozyq2002]

What is the name of your state? What is the name of your state? What is the name of your state? NEW YORK
Partnership of 4 has dissolved due to 1 partner and her lawyer/relative bullying the other 2 into signing dissolution papers after threatening then with financial ruin (long story, very heinous... only I realized the threats were idle and tried to fight back...unsuccessfully). Along with the dissolution, they slipped in a clause about transferring all the assets of the business to the one partner and her lawyer/relative. Very wrong, but I am still trying to find cash to hire a lawyer to rectify this...First question.... is there any equivalent of a public defender for civil cases????

Second issue: Evil ex-partner has not paid the bills for a credit card and another liability that were primarily under my name (e.g. business credit card under my name with the other three as authorized users). The card has only ever been used for business purposes and had always been paid off in full every month by the partnership. After this supposed dissolution, evil ex-partner continues to run the business "as usual" (with the exception that I have been literally locked out, had a locksmith change the locks and had this charged to this credit card!) After immediately cancelling the card I waited a month to see if it would be paid, and it hasn't. I don't have the cash to pay it myself. I still have an ATM/debit Mastercard from our partnership's business checking account that I believe is still valid. Can I get into any trouble for using my access to the partnership's checking account to pay the business expenses of this now cancelled credit card and other bills that have been left for me, simply because evil ex-partner thought she could get away with it? The debit card that I have is under my name (as an authorized user). Also, if the credit card co. wont let me pay their bill with a debit card, I have the same question with regard to using the routing number and bank acct of the business checking account as payment. I have access to all this information. Thanks.

 

[loku]

It is possible that you could get into trouble using the business’ debit card or bank account. You are no longer a partner, and so you have no legal authority to use those funds, even if the business owes you the money. The proper way to rectify this is to go to court. If the amount is small enough, you could go to Small Claims court. Otherwise, you definitely should hire an attorney. How good your case is depends on the facts that can be proven. If your case is good enough, you could probably hire an attorney on a contingency basis.

As for free legal help, there is probably none available for your problem; however, there is a possibility that LSC, Legal Services Corporation (Legal Aid), could help. Here is their link http://www.lsc.gov/welcome/wel_mes.htm

 

[snoozyq2002]

what if??

Not to push the point, but it would be trouble even if I have a valid debit card under my name with my signature on the back? I don't see why I would have to be a partner to use a valid card that I have been previously authorized to use.

Also, even though I am no longer a partner, NO ONE is any longer a partner if the partnership has been dissolved. I know I am just trying to get you to say it is OK, and that you won't say that, but I at least want to know an opinion based on all the facts.
thanks.

 

[loku]

I understand your problem, but I believe the new fact does not change my opinion. Either take this to court or get an attorney to look at all the facts and documents and decide if it is safe for you to withdraw the funds. A lot depends on the paperwork that has been done.