Partnership Dispute. Lawsuit Pending. Have I missed anything?

rileypool

rileypool

paper clique fiend
Mar 8, 2007
1,345
43
0
41
Tulsa, OK
rileypool.com
Before anybody says talk to an attorney, I've already setup a consult to get legal advice, but before I do I want to make sure I've got all my bases covered.

Company Details

  • I'm 25% owner of the company; My partner is 75% owner
  • I invested $25k into this company; My partners investment is $0.
  • I have only received $5k of my investment back
  • I'm the only one who has access to the domain
  • I have all the bank records of the company; They could get it if they went to the bank.
  • I have all the paperwork records of the company; They have nothing.
Being my first partnership, I didn't do enough things properly. My lesson learned is bulletproof paperwork is key.

As I left the company I felt like I needed some leverage for my position so I went to our shop and took a nice chunk of equipment from the company amongst much protest. The used equipment is worth about $5k. To replace the equipment it would cost $10k.

It was understood that when I left the company my family was going to pay me $10k up front and the other $10k next year as the company produced income. We came to a verbal agreement that I would return the equipment and get the first $10k and I would hold the website and maintain it until I got my final $10k. They waited on a check from my uncles 401k to pay me my $10k so we didn't sign any paperwork until that money was ready to be distributed to me. After a bunch of excuses on why not to meet, we never ended up meeting and all communication has gone unanswered. So I'm assuming the deals are off.

Here's the kicker. The company's website produces 95% of our annual sales. I still answer the sales emails that come in to try and produce sales. The domain name expires in a few weeks. They want the website. I would assume they want to take me to court to force me to hand it over to the company. The domain is in my separate marketing company's possession and it has always footed the bill for registration, hosting, etc. I'm aware of the grace periods for expired domains.

My problem with going to the attorney and taking them to court is when I win, and I'm 99% sure I will, I don't know how I'll be able to collect my winnings unless I give them the website and allow them to continue operating. They are completely fucking broke.

I believe my best bet is to take it to small claims court, sue for the maximum amount allowed ($6k) and cut any future losses. However, I still don't know how I'll be able to collect my winnings unless I give them the website. I assume I could take the rest of the assets the company has to help make up for the $6k, but I took pretty much anything worth over $1k minus about 3 or 4 things.

The shop the company operates out of is built on their land. My aunt paid for half of it. I paid for the other half and all the other costs to get the building ready for production. Can I place a lien against this building?

What if I just renew the domain registration and sell the website to a separate local storm shelter company? How will that implicate me and the other company in possible future litigation?

What if I let it expire? As far as I can tell the company, myself and the other owner of the company will no longer have any legal right to the domain.

Is there anything I haven't thought of that I need to consider?
 


I forgot to also mention that I have a conversation saved on Facebook between me and my partner, with our legal liason, that states the company was to be split 50/50, but the paperwork never was drawn up because that firm took forever to get anything done.
 
Couldn't you just keep the website and offer to hand it over once they repay you the full amount you are owed.. or am I missing something here?
 
How you recover your money:

Write an ebook on why you never start a business with family. Apply standard marketing techniques.
 
family and small claims court?

go on court TV, get some sort of reimbursement, share vid on the thread.
 
Family & friends business... whew.... swear, it's almost like the moment you mix money with blood a hex goes on your endeavor(s).

$6k opt out sounds legit. If they were smart, they'd probably sell their 50% of the business, pay you $10k.. and walk away with extra

Vadym said:
family and small claims court?

go on court TV, get some sort of reimbursement, share vid on the thread.
Click to expand...


Like this idea!
 
Beside that ask you a question: Is $20 - $25k worth to crack up your family?
It depends how big your family is and how important family is to you.

And have in mind: You will perhaps face similar problems when it comes to inherit.

I have seen it twice and the families was broke apart after that - forever.
 
It's always a good idea to post public threads about pending legal action before even talking to an attorney. Talk it out bro, journal your feels, the wickedfire legal department is closed for the weekend but will resume monday morning.
 
Walk away. Is it really worth your time chasing people with no money for a few grand. In the time it will take and the legal costs, you could have just made some more money on your own.
 
butcher said:
Walk away. Is it really worth your time chasing people with no money for a few grand. In the time it will take and the legal costs, you could have just made some more money on your own.
Click to expand...

Basically this. As shitty as it is, chalk it up as a lesson learned, and walk away. Heavily pursuing it probably won't do anything except deplete your bank account, add to your stress level, and take away from other things you could be doing.
 
Never ever ever start a business with a family member. Ever. It's an endless maze of fuckery.
 
Anyone in my family can show up right now , ill cut them a check for 25k and give them a hug.

Dont be a fucking faggot.
 
Taking a piece of equipment was not right. They could hit you with felony theft, thats not a civil matter.

It sounds like they have some assets. I would stop generating sales for them. It wouldn't be worth it suing them for 10k, the quality of lawyer that you would get in that lawsuit wouldn't do you much good. Unless you want to spend more than 10k to just to spite them.

Of course you could always hope for a default judgement and seize all their assets.

Why do you think you are owed anything? Agreements don't matter much, specially ones done verbally or on facebook, it'll be more based on facts / efforts.
 
wayn3 said:
How you recover your money:

Write an ebook on why you never start a business with family. Apply standard marketing techniques.
Click to expand...


Nah... that's like writing an ebook on why not to dunk your head in a public toilet.

Sorry, OP. I hope you've exhausted all other means. If they're broke, how are you going to get money out of them anyway? Also, if you "invested" 25k and only got a 5k return, that happens sometimes. Did they make you leave?


BigWill said:
Taking a piece of equipment was not right. They could hit you with felony theft, thats not a civil matter.
Click to expand...


Yeah, I'd be worried about that too, if you guys are playing chicken with each other.
 
If you only own 25% and they are "completely broke", shouldn't you just be out of luck or at their mercy on what they want to do as they own 75%?

I'd probably give them the option to liquidate the company, and then you would get 25% of the assets or 25% of the money from the sale of assets.

Or just wait until they start generating income and continue to own 25%.

If you don't want to help them or handle anything, hand it over to them under the condition that they sign something saying you own 25% of the company.
 
You must log in or register to reply here.
Top Bottom