Legal Question in Civil Litigation in California
my joint venture partner dissolved our venture and locked me out of my clinic tonight. he fired all employees under the old business name and then rehired them on the same day under a new business name,and and plans to open the clinic of his own in the exact location. He gave no notice he was going to do so. does ca sate law allow for such a take over? Can he decide to dissolve the venture, and throw me out without cause? our venture agreement states the only cause for dissolution are 1) lack of profitability,(the business turns a regular profit)2)a vote by either venturer to dissolve,and 3)the dissolution or filing of bankruptcy by any joint venturer.What course of action do I now take?
1 Answer from Attorneys
This sounds to me like a vote by one venturer to dissolve, though the vote could have been expressed in a better way. Ideally, your agreement will describe what happens after the venture is dissolved. For example, how are assets divided, etc. You had the foresight to provide for dissolution if either venturer no longer wanted to participate. Now that one joint venturer has chosen not to participate, you need to decide what you want. You can't force the other venturer to participate against his will. Is it enough to be compensated for your interest in the joint venture? Have you asked your former partner about it?
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