Page 1 of 2 1 2 LastLast
Results 1 to 10 of 20
  1. #1
    Join Date
    Oct 2014
    Posts
    11

    Default Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Theft

    My question involves business law in the state of: Florida

    The majority sharholder in a small start-up company (no employees) suddenly served me through his lawyer with a demand to pay over $100k back to the company. I have no idea how and why he came to that sum and he is also not speaking to me. He has not been part of the business for over 3 years although he is also a director. I know the allegation lacks any basis, but this guy is a shark and I don't know what to do.

    Please help and thank you in advance!

  2. #2
    Join Date
    Mar 2013
    Posts
    16,949

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    You hire a lawyer, that's what you do.

    And do it fast.

  3. #3
    Join Date
    Oct 2014
    Posts
    11

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    Quote Quoting adjusterjack
    View Post
    You hire a lawyer, that's what you do.

    And do it fast.
    Thank you for answering. I have a huge problem: I have no money to hire a lawyer. So I have no clue what to do now.

  4. #4
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    You were not "served" with a demand to pay $100k with no explanation. Were you mailed a demand letter or were you served with notice of a lawsuit being filed? What else is on the piece of paper you received besides "pay me $100k"? While you may not know how he arrived at that specific number, you clearly have some idea of what his grievance is. While he may not have been doing anything active in running the business, he is still the majority shareholder. Has he been receiving distributions of income out of the corporation? Why are you making people guess or beg for the details?

  5. #5
    Join Date
    Oct 2014
    Posts
    11

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    Sorry for the lack of details: beginner error.
    The letter was written by a lawyer and it basically says: arrange a payment plan within 30 days or we will bring suit against you. The letter ends with "This notice is provided as a condition precedent for filing a lawsuit". In the letter he writes "... written release from any further civil liability for the theft which occurred on or around the 12th of July 2012". I was not in the country during those months. So I really have no clue. The story is the following: we started a company together to distribute Chinese products. While I was in charge of the technical aspect of the business he took care of legal and finance. He managed to secure some investment from a third party. The investment was used to buy products but also to give us some income. For the months that the money lasted he received a monthly income, as well as I did. For 6 months he was involved in the business on the daily basis (just until the arrival of the investment) and then he started ventures with other people and basically disappeared (he also moved to another city). In all the time of the existence of the company we only had one board meeting but no shareholder meeting. Once he had moved away the relationship broke down and he started assuming things (although he had full access to all accounting files). Those assumptions let him (I guess) open a bank account behind my back to distribute money from a sale without telling or involving me. I learned from it when the bank clerk asked me which bank account he should use for a deposit. I resigned as a director from the company early 2014. The sum of $100k came up two months ago when I noticed he did not file the tax return for 2013 and I asked why but he did not answer.
    Thank you Bubba!

  6. #6
    Join Date
    Jan 2006
    Posts
    38,646

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    time to find the funds to hire a lawyer.

  7. #7
    Join Date
    Mar 2013
    Posts
    16,949

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    Or find the money to file bankruptcy.

    Average cost for a bankruptcy is about $1800 for a lawyer and court fees. If you want to do it yourself the court fees are a few hundred and there's tons of DIY information and forms on the internet.

    You do have the option of ignoring the demand and hoping that the guy is bluffing. He might be. But if you do get served with a lawsuit you are going to have to do something one way or the other or risk a default judgment that will put your financial life into the toilet unless you file bankruptcy anyway.

  8. #8
    Join Date
    Jan 2006
    Posts
    38,646

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    I do not know BK law well at all but if I recall, a debt incurred due to illegal activity cannot cancelled.

  9. #9
    Join Date
    Oct 2014
    Posts
    11

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    I like the idea of BK. I will check if that is possible as he is the majority shareholder. The company has not been operating for over a year anyway.

    I am not afraid of a lawsuit. Everything has been documented; I informed him regularly; he had access to accounts and bank accounts and I know I did not do anything ulawfull. There is of course the option he invents something but I doubt it. I only wanted to make sure I don't make a formal error.

  10. #10
    Join Date
    Mar 2013
    Posts
    16,949

    Default Re: Demand from a Business Partner Under Florida Statutes 722.11, Civil Remedy for Th

    Quote Quoting jk
    View Post
    I do not know BK law well at all but if I recall, a debt incurred due to illegal activity cannot cancelled.
    The US bankruptcy code doesn't use the phrase "illegal activity."

    See Section 523 - Exceptions to Discharge. Paragraphs (a) 2, 4, and 6 are what you are referring to:

    http://www.law.cornell.edu/uscode/text/11/523

    And even those debts are discharged unless the creditor petitions the court to declare them non-dischargeable. See Paragraph (c) 1.

    - - - Updated - - -

    Quote Quoting rfkinline
    View Post
    I like the idea of BK. I will check if that is possible as he is the majority shareholder. The company has not been operating for over a year anyway.
    Of course it's possible. His position and the company status is irrelevant. He's coming after you personally.

    Quote Quoting rfkinline
    View Post
    I am not afraid of a lawsuit.
    You should be.

    Quote Quoting rfkinline
    View Post
    Everything has been documented; I informed him regularly; he had access to accounts and bank accounts and I know I did not do anything ulawfull. There is of course the option he invents something but I doubt it. I only wanted to make sure I don't make a formal error.
    Doesn't matter what's documented. For $100,000 you'll be sued in regular civil court where the procedures are rigorous and complex and you'll be up against a lawyer who will run rings around you if you don't have one of your own. It's the technicalities of a lawsuit that'll kill you, not the documentation.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Speeding Tickets: Speeding in a Business District, Florida Statutes Sec. 316.189(1)
    By nice in forum Moving Violations, Parking and Traffic Tickets
    Replies: 1
    Last Post: 04-27-2014, 05:48 PM
  2. Retail Fraud / Shoplifting: Civil Demand for Internal Theft in California
    By jackred08 in forum Criminal Charges
    Replies: 3
    Last Post: 03-15-2013, 04:38 PM
  3. Retail Fraud / Shoplifting: Civil Demand Sent to Parent for Child's Theft
    By ladyv1 in forum Criminal Charges
    Replies: 14
    Last Post: 03-22-2012, 06:57 AM
  4. Retail Fraud / Shoplifting: Was Not Charged with Shoplifting in Florida and I Received Civil Demand
    By TATI2578 in forum Criminal Charges
    Replies: 2
    Last Post: 04-25-2011, 03:15 PM
  5. Business Disputes: Business Civil Theft
    By qshock09 in forum Business Law
    Replies: 3
    Last Post: 12-11-2009, 09:55 AM
 
 
Sponsored Links

Legal Help, Information and Resources