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  1. #1
    Join Date
    Jul 2010
    Posts
    1

    Default Partner No Longer Agrees to 50/50, Taking Money Through Alternate Company

    My question involves business law in the state of: Florida

    Thanks in Advance for your help.

    I own a business with a partner in a 50/50 relationship. After a few months of business my business partner no longer agrees to 50/50 split and wants all his old clients back for himself and split 50/50 of anything new. I told him if that's what he wanted we no longer had an agreement if he did that.
    Since then he has been running new business from his old clients through his old business which is no longer supposed to exist. He has probably made about $6000 since the contract was defaulted by him, most of it about 3 days after he said he wanted his old clients (sneaky?).
    I told him he can have his clients back but I want to keep the corporation we started, the bank account (just the account, split funds), and the domain name as I would make a new website.
    In our agreement I would do the social networking (Facebook/blog/twitter) and he would use previous trade to a web developer to build the company a website.
    After three months I got 800 followers on facebook, a hand full on twitter, and 1000 blog visits. I also did most of the leg work and uploading for the website. The website got complete by the developer about 5 days after he defaulted on our agreement.
    Since then my (ex) partner wants the company to dissolve completely so that neither of us can use it. I would not agree. I told him I would make an announcement that he is no longer part of the business and leave it on the site/facebook for 45 days. He wants me to put links to his new site, go silent as a company till his new company is started... and a bunch of other bull$#&*^ that I won't agree too.
    My question is... Aren't I legally owed half of all money he has made even though he wont agree to 50/50 original contract anymore?
    Since I didn't agree to the new proposed agreement I have NOT been able to gather any new work because I can't run it through our company and don't have another company to run it through, aren't these damages he is liable for as well?
    He wants me to dissolve facebook (800 people) and blog with many followers, a name that I created, all that I made possible just because he doesn't agree to our original business agreement.
    What can I threaten him with? Ideally I don't care about the money he made. Or half of the $5000 website that he got created (even though I never benefitted from it). I just want the name, the facebook, the twitter, and the domain name. Can I threaten to sue him for half of all work that he has done since he is still half owner of this company plus all money I haven't been able to make since he did that? How much power does he have?
    Thanks for any help.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    73,098

    Default Re: Partner No Longer Agrees to 50/50, Taking Money Through Alternate Company

    You own what kind of business? (Corporation, LLC, PC, partnership....)

    Should we guess that your bylaws / operating agreement / other contract(s) contain nothing about what happens if one of you leaves the business?

    If you agreed to let him stop directing clients to the joint business and start directing them to his old business, then he's acting with your consent.

  3. #3
    Join Date
    Jun 2009
    Location
    California
    Posts
    666

    Default Re: Partner No Longer Agrees to 50/50, Taking Money Through Alternate Company

    Quote Quoting RedandBlack
    View Post

    What can I threaten him with? Ideally I don't care about the money he made. Or half of the $5000 website that he got created (even though I never benefitted from it). I just want the name, the facebook, the twitter, and the domain name. Can I threaten to sue him for half of all work that he has done since he is still half owner of this company plus all money I haven't been able to make since he did that? How much power does he have?
    Thanks for any help.
    We can't see your written agreements, articles of incorporation, etc., so we have no idea what you agreed to formally. However, it would appear that you followed that with verbal agreements that cloud the issues. So, you can determine what you feel you are entitled to, file suit, and present your case. He'll present his and perhaps a counter suit. The judge decides.

    An alternative is to try to come to an agreement between you on severing your relationship. In the situation that you describe with each of you unhappy with the other, a "fair" solution would probably be one in which neither of you get everything that you want.

  4. #4
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Partner No Longer Agrees to 50/50, Taking Money Through Alternate Company

    And in the future, NEVER enter into a 50/50 business relationship. Never do a partnership. Someone ALWAYS has to be in charge with 52 percent minimum, or 55 percent for real control.

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