Legal Question in Business Law in California

Partnership law

I'm seeking a judgement against Cameron Douglas on the basis of a statement made by John-Paul Meagher--in Douglas's presence--that they (Douglas & Meagher) were in a partnership together doing business as D&M Trading Company, an international import/export business--Douglas siled, chuckled aloud and said sarcastically, ''yeah, sure.''

My company received an order from Douglas from D&M and shipped $10,000 worth of goods to Douglas. Douglas has defaulted on payment of the bill and is insolvent, facing bankruptcy.

Douglas denies he is Meagher's partner or that he has any liability for the goods. MY COMPANY failed to confirm with the county clerk in which D&M is supposedly organized to determine if a fictitious business name application had been filed.

1) Do you need to get a licensed independent accountant/auditor because of this incident. If so, what's the account's legal relationship and legal responsibility to MY COMPANY?

2) How should MY COMPANY or I proceed with this incident?


Asked on 5/11/09, 8:09 pm

2 Answers from Attorneys
Bryan C. Becker Your Lawyer for Life.

Re: Partnership law

Be careful using names in a forum such as this.

I do not think you need an accountant at this point, I think you need an attorney. An attorney will be able to sort through the corporate entity issues and advise you who is liable and how you can get your money (or goods). If you would like a free consultation, feel free to contact my office.

Yours truly,

Bryan

619.400.4929

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Answered on 5/11/09, 8:21 pm
Terry A. Nelson Nelson & Lawless

Re: Partnership law

1. If you need an audited financial of your own company to prove your damages, then you hire a forensic accountant to prepare one and testify at trial. If you need one from the other side, you'll have to seek it through discovery, probably only after obtaining a motion to compel from the court, and pay for it to be prepared.

2. "Seeking judgment" means you file suit, go through the process of pleadings, motions, written discovery and depositions, trial preparation, and conduct the trial, unless settled.

If you're trying to get judgment against a supposed 'partner', you'll need to be able to prove they are a partner, and a casual comment is not proof. You'll need to prove they are responsible for this claimed debt of their 'partner'.

If a defendant is insolvent, why would you waste your money to go after them?.

With all that said, if you are serious about spending the money it will take to pursue this case, feel free to contact me, if the case is in SoCal.

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Answered on 5/11/09, 9:01 pm


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