Legal Question in Business Law in California

removal of equal shared partnership ,I & 2 sisters

I and my Sisters were given along standing busi from our mother befor passing ,and made each of us equal executors. she gave us the business 12-21-2000.my sisters have decided to dissolve the partnership with me, i received a letter stating that i had no rights to manage any aspects of the buiness, that both sisters w/drew as partners. they will immediately take steps to have the assets of part/ship appraised and if appropriate,sold i i will receive my one-third share of net when all debts of partnership have been paid. they are still running the buisness and one has made it a corp /in the buisness name as well as her personal name i am only allowed in when asked. there is much more i am trying to stay short and to the point but i feel this is not fair or maybe even legal,yes i did see one atty that (another story) ,one that was my mothers and became us three girls,recommended. who knew this and did not even bother to call me ,when i asked why he didn't let me know that 3 wks ago, at the time they came to him ,(his reply was-I didn't think they were really going to do it)well they did and i am feeling betrayal and dishonesty,from all of the above.thank you .


Asked on 5/09/02, 5:10 pm

2 Answers from Attorneys

David Pearson Law Offices of David S Pearson

Re: removal of equal shared partnership ,I & 2 sisters

From your question, it is difficult to tell what your rights are without reviewing all of the documents for the estate and business. If you want to discuss the matter, I would be happy to speak with you and review the documents. I can be reached at (925) 287-0051.

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Answered on 5/09/02, 5:19 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: removal of equal shared partnership ,I & 2 sisters

The facts set forth in your question raise many more questions that would need answering before you can be advised properly.

First, a partnership must have two or more partners. Who were your mother's partners at the time she transferred her interest to the three daughters? Are they still around and involved?

Second, what partnership law governs? The partnership law of California has been modernized, but some (most?) older partnerships are still governed by the prior law. Only a careful check of the partnership records will show what law applies, and the differences can be very consequential.

Next, although this may turn out to be a non-issue, it may be important to look into the administration of your mother's estate. If the three of you acted as co-executors, did you handle everything properly, and has the probate process (if required) been formally concluded? Did you have legal advice?

Next, do/did you have a written representation agreement with the lawyer or lawyers involved with the dissolution and wind-up of the partnership? There could be some ethical violations if a lawyer tried to represent all three partners in a dissolution. At a minimum, the potential conflict should have been explained and your consent to multiple representation obtained.

Some of the facts you mentioned do not seem to be off-base. For example, when a partnership goes into dissolution, the individual partners no longer have the same rights (or liabilities) as they had before the event triggering dissolution. Therefore, if you have been informed that it is not 'business as usual,' that's accurate. The partnership must cease doing business as usual. On the other hand, the facts showing that you have been excluded from participation in the winding up process, and perhaps are being defrauded, are very worrysome and require, at least, a full and satisfactory explanation in terms you can understand.

There may be a valid explanation, or it could be that you're being cheated. Either way, you need a lawyer who can give you independent and competent representation, and I think you should act promptly.

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Answered on 5/09/02, 6:00 pm


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