Legal Question in Business Law in Colorado

purchase of dissociated partner's interest?

CO Statute 7-64-701 states that a partnership can purchase the dissociated partner's interest. Dissociated partner has made no demand for payment, but the Partnership has made a reasonable good faith offer (guided by 7-64-701 subsection 7). The 120 days required by that statute for the dissociated partner to 'commence an action' expired over a month ago, but the dissociated partner is now trying to sue. The partnership still maintains it owes him something and has tried to offer it, but the dissociated partner will not communicate. Can the dissociated partner sue? If so, what is the 120 day period in 7-64-701 for? How can the partnership pay him and be FINISHED? thank you.


Asked on 8/02/07, 6:56 pm

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: purchase of dissociated partner's interest?

Morning,

Mere payment will not "finish" this matter. The dissociated partner can certainly sue, but cannot, generally, sue to get a court to determine the buyout price. They can, however, do an end run around that in any number of ways.

You need to speak with an attorney. I hope you filed a statement of dissociation already. Feel free to contact our office with questions as this is not something to be done DIY.

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Answered on 8/03/07, 12:16 pm


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