Legal Question in Business Law in Georgia

I am the co-owner of a business that trains several types of working dogs. As we were developing the business one of my two business partners was already operating as an individual and included me in several of his business deals to give me an idea of his process and practices.

One client purchased a personal protection dog. My business partner went to Europe to procure an appropriate dog, brought it back and introduced it to the owners. According to him at that time they were thrilled and excited about the dog. At this point we were officially a business and the training of the dog was undertaken by us.

In the meantime my business partner became very attached to the dog. At that time my business partner's story changed. He began hinting that the owner was scared of the dog and would be uncomfortable handling him. Eventually I received a call letting me know that he had discussed it with them and that he had given them the option of a different dog, to which they happily agreed. I learned later from him that he told them that the replacement dog was his personal competition dog. Unfortunately, this was a lie. The dog was a dog he had procured from another trainer because the dog would not sell. It was also very difficult to engage the dog in bite work. I was actually the person who was handling the second dog. He lived with me and I worked with him daily. I noticed that the dog was reticent to bite, bark or be otherwise intimidating. The dog's obedience and house behavior when I received him was not at all up to standard-- something that he told the owners that the dog was very good with, but actually was not.

When I asked my business partner about the likelihood of the dog biting in an appropriate situation (ie if the owner's life was endangered) he said that it was not likely. I asked him, "so we are basically gambling with the possibility that she could be in a compromising situation again." His reply was, "yes, but it's unlikely that the situation will come up again. The best thing that could happen is that she returns home to a dog with a bullet or a knife through him."

At this point my misgivings were overflowing but I was uncertain how to proceed. The owner herself was very busy and continually pushed back taking the second dog. Eventually, I actually spoke with her and she said that they didn't think that a protection dog was actually a good choice for them right now. She also said that they had been very excited about the first dog, but were not as excited about the second one. This directly contradicted my business partner's story. In an email later she said this as well. She wanted to know about possibly getting a refund, or donating the dog elsewhere for service work.

It was not long at all after this that my husband woke me up to let me know that when he let the dog out that morning the dog had gone to the bathroom, and then laid down on the lawn very listless. The night before the dog had been barking more than usual, but the dog hadn't had his normal amount of exercise that day and I attributed it to excess energy. Once he laid down on the lawn that morning he deteriorated extremely quickly. In the time it took me to throw on shoes and grab the keys he was dead. We immediately took him to the vet. A necropsy indicated that he passed away due to a splenic torsion which took the intestines with it. The spleen basically twisted around the intestines and caused necrosis of the intestines. Once the intestines are compromised death of the animal comes very quickly. According to the vet this is a very rare situation. They don't know why it happens, or how to prevent it. It does happen primarily in shepherds-- indicating some genetic influence.

When I called to tell my business partner about the situation, his immediate response was that he didn't want her to know. He said that she could never find out. When I asked him why that was, he said, "we've already switched out her dog once. This will make us look like amateurs."

I voiced concern about not telling her. This all happened mid-February. He has since made no effort to communicate with her or compensate her. When I ask he maintains that she should not find out.

The woman made the check for the dog out in my business partner's name and I've handled none of the money. I do, however, have the contract on file, I have handled some communication with her and I was the one in possession of the dog when he passed away.

I am not sure what my responsibilities are based on my involvement. Because I work with my partner does withholding the information from the client make me some kind of accessory to a crime? Or, because the dog was sold in my partner's name, and not the business' would taking the situation to the client be unlawful on my part?

I want to handle this in the best way possible. I am quickly realizing that my business partner is very crooked and I'm in the process extracting myself from the business. I have nothing but time invested into the business itself and any loyalty or respect I had for my partner is almost entirely extinct at this point.

Any advice or thoughts that you could share would be extremely helpful.

Thank you.

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