Legal Question in Business Law in Hawaii

collecting past due payment for sale of construction company

we 4 beneficiaries have ''sold'' the construction company our father left us to our uncle. who also happens to be the trustee of the estate. the deal was;

every November for 5 yrs. we would each be paid $25,000.oo plus interest, at the end of the year we would get an additional percentage of the profits as well as a full accounting of the corporation.3 yrs have past & not only has payment been late EVERY year, wehave yet to receive a complete accounting report, infact we haven't been able to file taxes for for 2000 be cause we are still ''waiting''. the thing is we haven't been paid for 2001 & were not notified as to why not. I finally called in February & he says that bank will not release the money. Is he not in breach of contract? can't we demand payment as well as late penalty fees? or better yet seize the company back?


Asked on 3/05/02, 7:15 am

2 Answers from Attorneys
Joel Selik www.SelikLaw.com

Re: collecting past due payment for sale of construction company

Assuming California, the Trustee much follow the terms of the trust. If not it is a more serious problem than breach of contract, it is a breach of fiduciary duty. There are a number of things that can be done and should be done prior to suit. To start one must get to the bottom of the reasoning of the bank.

Joel Selik, Esq., Ll.M-Taxation, Attorney

800-894-2889

www.4thelaw.com

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Answered on 3/05/02, 8:59 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: collecting past due payment for sale of construction company

The situation you describe encompasses not only breach of contract, but also breach of the trustee's fiduciary duties (which include timely reporting) and possibly fraud.

A lawsuit is probably necessary as a means to (1) initiate discovery to determine what is going on; (2) replace the trustee; (3) satisfy the various statutes of limitations; (4) preserve evidence; and (5) begin the process of unwinding the contract, salvaging the values still present and claining damages from the wrongdoer(s).

If the California portion of the matter is located in the Bay Area or wine country, I would be pleased to offer a detailed free consultation.

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Answered on 3/05/02, 12:42 pm


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