Legal Question in Business Law in New Jersey

Money invested in an LLC

I was part owner(25%)and manager of a deli for two years. My partner constantly undermined my authority with the other help so I quit. I invested $10,000 over the two years which was suppose to go towards the purchase price of $25,000. I had 5 years to pay. We had a contract drawn up but I never signed it because of some things I didn't agree with. The deli is still in operation though not making much money. My partner has plans to change it into a restaurant or bed and breakfast. She tells me my share is worth nothing because the deli is losing money. As long as the business is IN business....she has the opportunity to make her money back. (she invested about $50,000 on top of the purchase price) I would like to know if I am entitled to any of the money I put in, back. Also during the last year I was not able to collect a pay check for about 6 weeks. The unsigned contract states that that is to be paid the following year. But since I quit is there a reasonable amount of time I should expect to be paid? She is also holding a weeks vacation pay because she says she doesn't have the money. What recourse do I have? Thank you in advance for any help you can give. me


Asked on 8/11/02, 4:14 pm

1 Answer from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Money invested in an LLC

Your question cannot be properly answered as asked because you are making some assumptions that need to be clarified. If you are a part owner of an LLC you cannot just "quit". You are an owner and have a part interest. You did not "invest" in your own LLC, you made a capital contribution. This is different than an investment and has different legal consequences. And, as a partial owner, you still have a say in what goes on. Bottom line - you would need to clarify exactly what your interest is and then determine a course of action. This is not something that you should just let go. You need to seek immediate legal advice. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There certainly may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since it appears that you have not retained an attorney, you may want to contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. Mention Law Guru and your first consultation is free. Good luck! Rob Gleaner

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Answered on 8/12/02, 10:09 am


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