Legal Question in Business Law in Arizona

Signing over your business

My brother had his own business for the past 6 years, He met a girl and for some crazy reason decided to sign over his whole business to her. She was helping him at first with paperwork, etc. 1st he put her on the checking account then put all his equipment in her name, bought a 2001 dodge truck that is in her name as well. She became real greedy and wouldn't let him drive the truck, then wouldn't pay any money and finally she fired him and took over everything and now hes tring to start another business without a vehicle or any equipment, obviously its not happening. Is there anything that he can do they have no signed contract just a verbal agreement of some kind. but it is all in her name. He was having real problems when he met her and she feed on him being down and totally munipulated him, and basicly outsmarted him or took his kindness for stupidity. I can't believe someone could just take over and dump all over you, anyway is there anything to do? She won't even give him any of his own equipment so he can work, if you have any advice I would greatly appreciate it.


Asked on 2/10/01, 3:09 am

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Signing over your business

There are several legal remedies which could be explored concerning this situation, including establishing a de facto partnership, imposing a constructive trust and embezzlement or fraud.

Showing that the source of the business did not involve funds or effort on the part of the girlfriend would be a necessary part of the proof.

Such actions could be quite expensive, however.

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Answered on 3/22/01, 10:25 am


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