What do I do if my partner sets up the same business with another person?

Get Legal Help Today

 Secured with SHA-256 Encryption

What do I do if my partner sets up the same business with another person?

A 1/3 Partner went to a customer and provided detail of our business to start their own and refuses to pay the loans that that partner took out of our business. They also took possession of company assets. Is this criminal or due I need to file a lawsuit? Also, customer is from another state.

Asked on February 16, 2012 under Business Law, Missouri

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If your partner set up a business in direct competition with the one you have with him or her and took possession of company assets for this business, your partner violated a fiduciary duty to you.

As such, I recommend that you consult with a business attorney as to what legal recourse that you might have consisting of, but not limited to an injunction as well as a lawsuit for actual damages. The conduct is more civil in nature as opposed to a criminal matter in my opinion.


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