Legal Question in Business Law in Arizona

While your business partner's actions may not be ethical, they may be legal. Without further information, including your partnership agreement [oral or written], a conclusion cannot be drawn. Ordinarily, however, partners owe each other fiduciary duties, which include loyalty, and not competing against the other partner. You likely have a cause of action for breach of fiduciary duty and one of your remedies is the ability to stop your partner from continuing his/her efforts in the competing business. I have previously litigated legal issues like this.

Please contact my office to discuss your options.

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Best,

Doing this may involve infringing on business opportunities, diverting business opportunities, taking resources, including clients, equipment and staff, away from the original business partnership, or other breaches of fiduciary duty. There is (or should be) a partnership agreement, operating agreement or other agreement governing this type of behavior. If you don't have one, obviously, you should get one.