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My business partner is abandoning our business to start his own doing the same thing.Can i do anything about this.

Asked over 2 years ago - Texas

Business

when starting our business there was a huge risk for me as I was putting in all the money with no track record of what this new business could make and that is why i have a majority shareholding in our business but now that the business is doing very well he has shown our figures to an investor who has promised him that if he goes on his own they will back him and he can be majority shareholder in the new venture.They will be stealing my suppliers and selling to my customers.Is this bad business practise.

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Attorney answers (3)

Robert John Murillo

Reputation Level 15

Answered over 2 years ago. Business Attorney in Boulder, CO.

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You need to contact a local business litigator immediately. Depending on the facts, there may be claims of breach of fiduciary duty, breach of contract, trade secret claims, so on.

Get an attorney. Contact people you know and trust for referrals. If you have no referrals review this site or contact your local bar referral program. Good luck.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

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Kenneth Evan Chyten

Reputation Level 14

Answered over 2 years ago. Business Attorney in Oxnard, CA.

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While I do not practice in Texas, and can only answer based on California law, there might be a claim for interfereing with your contracts or business relationsips with your existing customers or suppliers.

As my esteemed colleague noited in a previous response, you should contact an attorney in your area quickly, before any damage can be done.

Good luck.

PLEASE NOTE THAT THIS RESPONSE SHOULD NOT BE CONSTRUED AS A LEGAL OPINION OR ADVISE, AND DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP. IN ORDER TO RENDER A LEGAL OPINION OR ADVISE, THE RESPONDING ATTORNEY WOULD NEED FAR MORE INFORMATION THAN HAS BEEN PROVIDED, AND WOULD NEED TO BE RETAINED PURSUANT TO A WRITTEN FEE AGREEMENT.

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Arieh Mordechai Flemenbaum

Reputation Level 12

Answered over 2 years ago. Business Attorney in Chicago, IL.

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While I am not licensed in Texas, your issues is one that is generally governed by legal principals that are similar in most states. I agree with my colleagues and would add that in Illinois you may also have a claim of tortious interference with business relationships as well as a breach of fiduciary duties and the other claims my colleagues have mentioned. So I too would recommend you contact a business litigator as soon as possible to discuss your matter and possibly seek injunctive relief against your business partner and his investor.

This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. Please consult a local business/litigation lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.

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