Legal Question in Business Law in California
I did the accounting, business plan for my spouse and a friend-partner's LLC company for 1/1/2 years. I had no written contract and was not a member of this LLC. The LLC was dissolved in April. Prior to this,in Jan 2010, I sent a bill to both partners for my services which totaled to 111 hours. I prepared the tax returns, financial statements and highlights, attended meetings to discuss financials, prepared 52-page business plan, prepared the operating agreement, account and bank reconciliation among others. My spouse business partner mentioned verbally that I should be compensated for my services as their accountant. I billed the LLC for 111 hours at $45/hour. My spouse had paid me for 1/2 of his share but the other LLC partner refused to acknowledge my service since there was no agreement. Do I have grounds for suing him in Small Claims Court for his share of my fees? Please advise.
3 Answers from Attorneys
You have nothing to lose, go for it! If the court finds your spouse and his friend are in fact partners or agents of one another, then your argument is that your spouse ratified the contract on behalf of the partnership by paying you. File your small claims case online at occourts.org .
Any attorney will say you definitely have grounds to sue in Small Claims Court. The fact your contract was not written is not fatal; many contracts are oral. Consult with an attorney in your area for specifics.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
Of course you have arguable grounds to sue, your only issue is proof for your billing. The only useful advice anyone can give you is to either negotiate a resolution, or sue. If under $7500 in dispute, file in small claims court. IF substantially over that, file in Superior Court with an attorney. Of so, then feel free to contact me.
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