Myself and another guy (close friend) were approached by a larger company to open a construction company. We would run the day to day (job bids, estimating, materials, drafting, fabrication and installation etc...) They would finance the company and we would pay our way into based off profits at the end of the year. We started in late October 2011. Everything was on track until recently they decided to pull the plug on the whole company. We have almost 1 million in work to date with no way to finish these projects without the funds to do so. Where do we go from here? We cant give theses jobs back without fear of being sued! Not to mention our names being tarnished in the industry. Chances of getting another job at another company is remote. What should the next step be? what are the option
You need to sit down with a business/construction attorney right away. Presumably, there are writings to confirm the existence of the business relationship, and, even if not, it sounds as if you've performed in furtherance of the agreement. These documents and acts need to be analyzed. Additionally, you need to discuss, and then explore the options for completing the work that you have in progress. Those contracts need to be looked at, and you need to figure out "how much" is needed to finish the work, and then look at options for obtaining it. Presumably, the work is not bonded by you, but if it is all bonds need to be looked at. It is more than likely that you have a claim against the company that pulled out, BUT that claim is not going to be resolved before these other projects are due, so you need to take a unified concerted approach and explore all avenues of recovery and damage mitigation. If you'd like to discuss, please feel free to call.
As my colleague says, you need an attorney immediately. This situation cannot be resolved by yourselves or on Avvo. You need to assemble all your documentation with the investor/larger company, including contracts, emails bank records of transfers, and all corporate documents. Y
The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
Your matter turns on your agreement. You can recover all losses if the termination was wrongful.
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