Legal Question in Business Law in Georgia

usingname of non-partner

a friend ask me if his brother could work with me for a while to learn how to install sewer & water lines, he wanted to help his brother build a business. my friend would buy his brother some equipment later and then start the business, while in the learning process the equipment was bought and my friend came in one day with a checking account in the name of, me first,my friend second, and his brother third. the lettering on their truck carried the same names, as did the busniess licenses. the bank say's i can't have my taken name off the account i have to write to the state,he has seen some of my builder's on the job told them he could get to the work, he had been doing my work for my customers, their thinking its for me and sending the check to him, i've told him to stop using my name everyone in this town knows my name and my work for my father did the same work in the same town, that's how the name became known, over 40 years of history in our community i don't need my name trashed by thier bad jobs, please help.


Asked on 2/25/00, 8:43 pm

1 Answer from Attorneys
John Etheriedge Etheriedge & Associates, PC

Re: usingname of non-partner

You've got nice "friends." Your "friend" and his brother have apparently made you an involuntary partner in their business and are attempting to steal your business. You are in a very dangerous situation with these two guys--both because of potential liability for being "partners" with them, and because of the loss of your own business. These two aspects make it important to get a lawyer involved immediately. The lawyer should be experienced in partnership and tax law.

If you cannot or will not retain a lawyer, then you need to act immediately on your own. A person cannot be forced into a partnership against his will. However, he may become one if he sits by and does nothing, knowing that someone else is holding him out as a partner. So, your response should be to send letters to everyone stating that you have no connection with your "friend" and his brother. Send them to the bank, the city or county which issued the business license, and, most importantly, all your contractors and anyone else that these two may have had contact with.

Then write your "friend" and his brother stating that you are not partners with them and have never given them permission to use your name or talk to your contractors, and demanding that they get your name off of their bank accounts, truck and business license, and stop contacting your contractors. Also, demand that all monies they have made as a result of talking to your contractors and using your name belongs to you (as the understanding you had with the two of them is that the brother would be simply learning the business).

I don't know whether this latter step will work. I suspect it will not. I definitely recommend that you talk with an attorney with experience in partnership, business and tax law.

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Answered on 3/09/00, 3:23 pm


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