Legal Question in Business Law in Michigan

Contract Releases

Recently, I released liability and action from a former partner from his covenant not to compete in exchange for his shares of stock. Three months after, we discovered there was a substantial amount of money stolen we were not aware of at time of release (had we known, we never would have signed the release). Does a civil contract release protect anyone from criminal activity. Should he not have disclosed to us of assets he had in his possession but didn't make all parties aware. If so, is there a case reference? Help please!


Asked on 2/12/04, 7:42 pm

1 Answer from Attorneys
Janet Ziulkowski Ziulkowski & Associates, P.L.C.

Re: Contract Releases

Release of the covenant not to compete and the alleged theft of monies are two seperate issues. Just because a party is released from a contractual obligation generally does not release that party from obligations arising from theft, fraud or other willful and wrongful acts. While its true your partner may be suject to criminal charges, depending on the facts and circumstances, he/she may also be liable for civil damages as well. However, without reviewing the release, it is impossible to provide an adequate analysis.

I offer free initial consultations. If you would like to discuss this in further detail, call me at 586-979-7302.

Good luck. Janet Ziulkowski

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Answered on 2/12/04, 7:50 pm


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