Legal Question in Business Law in California
CALIFORNIA: a grievous previous employer ( and x-in-law) is accusing me of loss of revenue during the time I operated his business. His evidence is Quickbooks - the profit and loss, each year P & L is one page. I am not sure what version this is he uses but he has P&L going back to 2003.
My question: is Quickbooks considered legal evidence in court? can't someone just change number if they want to?
He also is claiming to have paid me wages that I never received, there is no payroll check, I never received a W2, W4, or 1099.
4 Answers from Attorneys
Yes, Quick Books could be evidence in court. You have to attack that evidence by questioning the chain of evidence and perhaps ask about the history of input modifications. Requires a lot of time and attorney time and money. Perhaps think about hiring a forensic accountant with a computer background.
If you were operating the business, as you say. wouldn't you also have been responsible for the accounting, including the Quickbooks entries? For meeting the payroll, including yourself?
The whole situation seems a lot more complicated than set forth in your somewhat brief question. What was the agreement for you to operate the business in the first place? Is it in writing? What kind of compensation was agreed upon?
Sorry to have to respond to a question with further questions, but in truth this has the earmarks of a deep-seated dispute that requires pages of explanation, or an in-person interview, before an attorney could begin to make sense of the charges, the evidence available, etc.
Quickbooks data could be admissible under the business records exception to the hearsay rule. It is up to the party offering the data to prove it qualifies for the exception, including but not limited to authenticating the sources of the data are true and correct before offering the data.
As a Franchise Attorney I can only add the following. The bigger picture issue is how could you be responsible for a loss of income, if you were truly an employee? Unless you embezzled money or similar acts, an employer is responsible for any negligence of its employees. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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