What are my rights to a settlement brought by a corporation if I’m a 50% owner of the corporation?

Get Legal Help Today

 Secured with SHA-256 Encryption

What are my rights to a settlement brought by a corporation if I’m a 50% owner of the corporation?

We lost our restaurant illegally to the landlord and as a consequence, I had to file for a bankruptcy. My 50% partner instead filed a lawsuit on his own and just won the case against the landlord for $141,000. Do I legally got any thing from it since I’m a 50% partner in the corporation?

Asked on March 31, 2017 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If the case was filed in the name of the corporation, for the corporation's losses, then (to oversimplify somewhat) as 50% owner of the corporation, you should have received 50% of the proceeds, and could take legal action to get your share. But if he filed in his own name, for losses he personally suffered, then no, you are not entitled to a share of his personal award for personal losses; you could have filed your own lawsuit for you own personal losses.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption