Legal Question in Business Law in California

Re: Partner wants me out... What options do I have?

It may just be a matter of a writing a few letters and citing to the relevant law. I would be willing to start helping you on a $500 retainer.

Re: Partner wants me out... What options do I have?

You have affordable legal options here to protect your rights and/or obligations. For prompt, very affordable legal assistance in this unfortunate business matter, contact us directly today for a free phone consultation.

Re: Partner wants me out... What options do I have?

To begin with, do you have a partnership agreement or any evidence that the two of you have been partners (tax returns, etc., fictitious business name statement, etc.)? While one partner can dissolve a partnership by just telling the other that he no longer wishes to be in a partnership, that does not mean that you need to just walk away. The partnership in that instance is dissolved and several steps need to be taken. First, provisions need to be made to make sure that all of the existing creditors of the partnership are paid. If he will be assuming those liabilities, that needs to be in writing. Second, after all liabilities are handled, you and your partner are entitled to whatever is left, split according to your percentage interests in the partnership.

As to how much it will cost, I agree with Mr. Brainard that the cost of a few letters may solve the problem. However, if it does not, then one of you may have to file a lawsuit to dissolve the partnership and have the court oversee the process. That will cost quite a bit of money in attorney's fees.

We would be happy to discuss this matter further with you if you wish.

Re: Partner wants me out... What options do I have?

California has a complete statutory system for partnership withdrawals, dissolution, winding up, and termination. Your rights will depend, first, on whether the other guy was entitled, or not, to pull the plug. Next, you would ordinarily have the right to an accounting and payment of your share -- possibly 50% -- of the partnership's net assets.

You also have to be sure creditors are paid, and that parties who have dealt with the partnership are notified that you are no longer connected with the business.

I'm on the road today and thus can't cite specific code sections, but these laws are found in the Corporations Code somewhere around sections 16600 to 16899 or so.

Looks like you're in Sacramento; by coincidence, that's where I am today and tomorrow, at the Unified Wine & Grape Symposium -- back in my office Thurs. I'd give you a free consultation on the phone if you call me.