Legal Question in Business Law in Colorado

A friend and I formed a business to produce snacks to sell in grocery stores. My job was to provide the recipes, his job to handle the business end of things. We met regularly to fine tune the recipes. Last week we were ready to go. That's when he informed me that our company no longer exists, that he's started up his own company in which he's going to use my recipes (he's going to change one tiny thing in each recipe) and keep all profits for himself. Can I sue him for this? Also, both of us were to put in $100 to start the company, but he never cashed my check. Does this mean we even had a partnership? Is this evidence of his manipulation that will allow me to sue him? And now he says he's going to sue me for money owed. Is that possible?


Asked on 10/18/14, 8:46 am

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

If you did not establish an entity (LLC or corporation) then it sounds like you two were partners. It also does not sound like you had a written partnership agreement. That's unfortunate.

You can form a partnership or joint venture by oral agreement or by action. If there is a partnership, you owe each other fiduciary duties and this former partner may have violated those duties.

It really does not matter if he did not cash the check as what matters is the plan and the effort to go into business together. Now, even if you have a claim, the question that arises are the damages. You need to speak with a business attorney and get more information on your options and strategies.

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Answered on 10/29/14, 4:42 am


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