Legal Question in Business Law in California

partnership in writing....

I started a convention thats in another state and we i have a website that promotes and takes funds from tickets sales, i have a partner that has put no monies into the business , i have vested about $3000 startup cost, This partner came up with an agreement that states we are 50% partners !! He has done illegal activicy within our business such as embezzelment, telling potential sponsors fraudenlit statements of promises in lieu of funds, he has made false statements ( in writing) of child molestation on my of our sponsor, subsequently that sponsor pulled out and took another sponsors with him losing a $6000 sponsors, ! we have 4 other member (we are not an LLC or Corp. we are just a DBA company !) and we had a meeting to remove him form the company, we had the meeting and told him what he has done and the damage that was cause because of his action, and he refuses to resign, so i fired him ! My question is is he fired or because our partnership wont allow me to do that ( it doesnt say that) So you know that after he was fired we obtain contract that he had written without my knowledge that allows some guest to be paid several thousands of dollars ( his personal friends) luckly for us that this contract were forged, by him


Asked on 11/09/07, 5:46 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: partnership in writing....

So...

You want a 'magic wand' five second answer to what is going to be serious legal problems and litigation? Sorry.

What you need is actual legal help sorting out this mess and trying to keep you from being sued by everyone involved [and defending you if sued]. Feel free to contact me if you are serious about doing this right.

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Answered on 11/09/07, 8:50 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: partnership in writing....

Whew! I agree that this so-called business is a sorry mess. Lots of incompetence reflected here, and lack of business knowledge.

OK, let's start with the accusations of crimes. I notice child molestation, fraud, forgery, embezzlement, and (probably) defamation. Why would you want to be in business with someone like that? Actually, I think it is doubtful any of these charges would stand up in court, but if you think your partner has done this, you need to wind up the partnership.

Next, you have to distinguish being a partner in a business from being an employee of a business. A business can fire employees, but partners can't be fired.

Putting in money is not necessary to being a partner. Sometimes partners are admitted in exchange for services to be performed, contribution of property, or sometimes just for their knowledge, experience or good name. It all depends upon your agreement, and if you have no written agreement, a court would find an oral agreement or even a tacit understanding with no express agreement at all, whether written or oral, sufficient to create your partnership and even establish the deal terms.

Partners are all liable for partnership debts and other liabilities, whether they consented to their creation or not. If you are in bed with untrustworthy folks, it is time to get out before you get creamed. If the business is worth anything, hire a lawyer to extricate you in a way where you get paid off. If it isn't worth much, just pull the heck out, resign yourself, before disaster strikes. Start over with good people and a written agreement, and make sure everyone sticks to the agreement, day by day.

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Answered on 11/10/07, 12:38 am


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