Legal Question in Business Law in California
if money was given to partner in an LLC
I gave 40k to my partner for certain business expenses and have now found out that he did not spend all of the money accordingly. if mediation is not working what are my other options and what are the likely outcomes?
1 Answer from Attorneys
Re: if money was given to partner in an LLC
You can sue for various causes of action, including breach of your partnership agreement and fraud (i.e. being dishonest in what he told you he was doing with the money) and also ask the court to require an accounting of the money. An attorney would need to look at any agreements between you to determine whether you have a chance of getting attorney fees back. Your chances of success depend greatly on the strength of the evidence that your partner did as you've indicated. You mention "all" of the money was not spent according to promises, which implies that some of the money may have been. How much money actually is at issue will determine which court is involved (small claims, limited or unlimited). If you have a partnership agreement it may, for instance, provide you with the means to demand arbitration, which is less expensive than going to court. An attorney will be able to help you evaluate your options and the best strategy for this matter as well as the strengths/weaknesses of the case after reviewing the related documents.
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