Fight it, or pay?
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Fight it, or pay?
A sole proprietorship owner receives funds from an individual in the amount of 20K for 10% ownership in her business, no written contract just a check with a note at the bottom stating the 10% purchase. 90% owner sells company for 75k and offers $7500 back to the investor as payment for his 10%. Investor (by way of a lawyer) asks for an additional 5K and threatens to sue the newly formed LLC version of the original company and the company that purchased the sole proprietorship for up to 30K+ if the $12500 isn’t paid within 120 days. Get a lawyer and fight it? Or just pay the $12500????
Asked on June 6, 2009 under Business Law, Texas
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You should always get a lawyer. Funny, no contract huh? Usually that doesn't fly. How do you know it was just a gift of 20,000.00 given to you?
Call a lawyer. Try www.attorneypages.com and check his or her record at the Texas State Bar. Even consulting with one on a one on one situation would be quite helpful. Make sure you go prepared -- your corp docs, the cleared check or copy thereof, etc.
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