Legal Question in Business Law in Massachusetts
Splitting up a partnership, our partner has ridiculous demands
We have absolutely no written
agreement, have been partners for two
years, we decided to split up the
partnership and now all the sudden, our
partner wants to get back rent for our
office. We never agreed to pay rent, we
exchanged discounted work to his other
businesses for an office space. He also
wants equipment he purchased for the
business. Total value aprox. 600 dollars
but with depreciation, almost nothing,
HIs other businesses owe us aprox
5000 dollars. What do we do?
2 Answers from Attorneys
Re: Splitting up a partnership, our partner has ridiculous demands
You are unfortunately experiencing the consequences of failing to enter into a partnership agreement from the outset. Now you need to consult with a lawyer about your rights, and if there is a dispute it would cost multiples of the amount in controversy for the case to be tried in court.
First step is to call your local bar association (or MA bar assoc.) for a referral to a lawyer who does this kind of work.
If I had to guess from the specifics of your query, what your partner really wants is to walk away without paying the amount owed by his company, and is just using the other issues as leverage. He might take a more reasonable approach if you have a lawyer analyze the facts and send a courteous letter with a reasoned position on the appropriate distribution of the assets of the partnership.
Best wishes,
\LDWG
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Re: Splitting up a partnership, our partner has ridiculous demands
If you have no agreement, then I do not see how one partner can charge another for back rent. If you had an agreement of payment-in-kind, then you have something. I just see something amiss in a situation where a discontinued partnership, not causes one of the partners to go after the other. I am sure that a case can be made for you seeking compensation or payment for items that he may owe or be liable to you.
As Mr. graves said, resolving this situation seems beyond the point where you can do it alone. You mau simply need one meeting with an attorney to lay out the situation, and assess your options. Otherwise, it could be a more expensive matter for both of you.
I am in my office now, and you are certainly welcome to contact me at 978.749.3606.