Legal Question in Business Law in California

I lost my business do to regulation with the state of California. I had a silent partner that put in $220,000.00 and when business closed he kept asking for his money back. Now, I lost everything and was going to give him 1/2 of what he put in. Today, Sunday he forced me to take him to the back and get every penny out of the bank account. Made get a money order for $100,000.00 its all the account had. Was it legal for him to force me to do that? I understand he put money in, but the company closed it doors, which sucked, but I had no control. Did he have the legal rights to force me to the bank and withdraw all the money?


Asked on 4/02/17, 4:37 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Whether or not your silent partner was legally entitled to a refund of part or all of his money depends upon several factors not mentioned in your brief question, including the nature of the business organization (partnership, LLC, corporation, sole proprietorship) and the specifics of the agreement under which this rather substantial sum of money was provided. Most investors would not advance $200k to a new business without a written agreement of some kind or at least an enforceable understanding regarding their rights and future expectations. I believe that a proper analysis of your rights is going to require that you have an in-person discussion with a business lawyer.

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Answered on 4/02/17, 10:47 pm


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