Legal Question in Civil Litigation in California

Partnership dispute over selling boat

My friend and I had a houseboat built 3 yrs ago. we are co applicants in the boat loan and both listed with DMV. We agreed that everything would be split 50/50. We verbally agreed that when one party wanted to sell, the other party would either "buy out" the first party, or we would sell. I have been trying for the past 1 1/2 yrs to come to a reasonable price on selling the boat, and he is making it very difficult to sell it. He also refuses to "buy me out." I tried for 1 yr to sell at the price that he is asking, but received no offers. I recently dropped the asking price, and he is now saying that he will not sign over the boat until a set amount of money was in his hands. The amount of money that he wants is unreasonable. It would leave me with no money after the loan was paid off, and leave him with a few thousand. This boat cannot be appraised because it is homemade. Now I cant even try to sell the boat to anyone, because he will not sign the boat over unless he gets the amount that he wants. I dont know what to do. Should I take him to small claims and ask the judge to give us instructions on how to sell the boat?

Who is being unreasonable, me or him?


Asked on 5/19/00, 7:04 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Partnership dispute over selling boat

You will need to go to court and ask for an order to sell the houseboat or set a value. Even though it is homebuilt it has a value - and the value is what a willing buyer would pay a willing seller. There are boat appraisers who can give you a good idea of the amount.

The value of the boat has nothing to do with how much you owe on the boat, or what your partner thinks the boat is worth.

Your partnership agreement should have an arrangement where the sales price is established so that either one of you can buy the other out. Approach your partner and ask him for how much he wants for his interest for you to buy it - ask for the smallest price and get it in writing. When he gives you a figure then tell him that you will sell him your interest for the same amount. Make your offer in writing and keep copies. Then when you go to court you can show the judge how unreasonable he is.

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Answered on 7/04/00, 6:16 pm


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