Over the past 6 months my business partner and I were going over details of when I would be paid for my part of the business $80,000.00. And, last week he notified me that he was no longer going to buy my half of the business instead he said he was going to dissolve the business and"start fresh with a new company LLC he recently formed. He formed a new LLC and then proceeded to sign contracts with the same town our old company was doing business with, also, he used the same names of the camps, same employees and the same customers as our old camp. Ultimately the only thing that is new is the camp name he just formed. What I want to do is file a law suit against hime and get my 1/2 of the company back or $ that he stole form me. And, in the process I was wondering if it would be possible to ask a judge to freeze all operations of the company so he cannot continue to keep the 100% of the profits. I sent him a registered letter which stated that he has breached his fiduciary duty of loyalty to the comapny by creating a new company and directing old customers of the former company to your new company. We asked him to complete the sale as initially agreed by paying 80,000.00 in full or risk a law suit.
YOu may have a claim against your partner, but it depends on many variables, including: the structure of the business (partnership, llc, etc), what your interest was in the business, how it was capitalized, whether your partner had the authority, under the business structure, to do what he did.
It's unlikely that you can get an order freezing operations of the new company, nor would you necessarily want to, because those operations is what's likely to pay the damages you're seeking.
These partnership/shareholder disputes can be simple or very complicated. The devil is in the details of how the business was set up.
4 found this helpful