Legal Question in Business Law in California
promissory estoppel
Worked with a prior friend for seven months training him in the profession I have been in for twenty years. He had no prior experience.
His promise was to sell a piece of real estate to front the money
needed to buy inventory. Seven months commuting back and forth to west coast from the East coast, stayed at his place and hotels. Worked on everything you would do when starting a business. He was given access to the manufacturer in China and all the inner workings so to speak. Because we had been friends for twenty I never asked for a contract but because of his low cash flow prior to selling the real estate my name and SSN was used to open the company bank account as well as my business mail being sent to his home office in CA. He was the one on many occasions asking me to come out to CA and referred to us as partners in front of many friends(witnesses) I lent him money, paid home gas and electric bills, rented him cars, put him up in hotels, and basically put my career off for seven months till his property was sold and he became a millionaire,At which time I was cut out of access to office, home and anything to do with company. Do I have a case and chances of winning? Thanks Joseph
4 Answers from Attorneys
Re: promissory estoppel
I think you have several theories upon which you could proceed in court, promissory estoppel being among them. The others would include breach of an oral contract, breach of a written contract, breach of fiduciary duty, an action for dissolution of a partnership, and fraud.
Promissory estoppel is not a cause of action in itself; it is a doctrine for establishing enforcability of a contract, written or oral, which would otherwise be uneforcable due to lack of consideration, or some other defect e.g. a promise to convey real property without a written agreement. See Monarco v. LoGreco (1950) 35 Cal.2d 621. So, if I were writing a complaint on your behalf, I would probably mention "estoppel" and "promissory estoppel" at several points, but would assert claims for relief ("counts" or "causes of action") based upon contract, partnership, fiduciary duty and fraud theories.
Unless your ex-fried has defenses that are not apparent from the facts as you give them, it should be possible to convince a judge or jury that a partnership was formed, and must now be dissolved (meaning, you must be bought out); or that there was an oral, possibly partially written, agreement that can be enforced.
I would be pleased to offer you a free consultation including review of all the fatcs.
Re: promissory estoppel
Possibly, were there any witnesses to his promises? How much did you spend in reliance on his false promise to reimburse you from the sale of the house? Send me an email.
Re: promissory estoppel
Based upon the facts that you provided, it would not be necessary to rely upon promissory estoppel to proceed against your ex-friend. Rather, you would simply allege a breach of an agreement -- presumably, a written agreement, but an oral agreement could just as well be established. (Also, keep in mind that promissory estoppel is not really a cause of action, as much as it is a substitute for something called consideration; in rare cases, the courts will substitute promissory estoppel for consideration in a contract, when it is found to be lacking, and when the circumstances warrant it. Based upon these facts, it would not be necessary to rely upon promissory estoppel).
Find a good civil litigator and have him/her review your documents to ascertain whether or not you have a case worth pursuing.
Re: promissory estoppel
As usual, Mr. Whipple has given an excellent answer. It sounds like you have a strong case, provided that there is evidence of what you say happened and that other facts don't give your former partner a valid defense.
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