Legal Question in Business Law in New Jersey

We have a LLC that resells vendor services. I own 51%, CFO owns 40% and a 3rd partner owned 9%. The CFO started a competing company and primary ownership to his spouse, took control of an account with the new company even though he had a non-compete clause in his contract. He did not tell us that he left the company, but continued to bill while simultaneously working with the new company. He did not pay the vendor and refuses access to banking records and removed a partner's name from the bank account. We continued to incur billing for 7 months because he did not inform us or the vendor of the client's service change. He has a non compete contract. I want him to reimburse the company for vendor charges and present the financial info so that we can file taxes. What are the legal avenues available to help us resolve these issues.


Asked on 9/08/16, 7:08 am

1 Answer from Attorneys

He may be in breach of the non compete agreement and you may be able to collect damages. In addition, as a member of the LLC he has a fiduciary duty to the other members and by opening a competing company he may be in violation of his fiduciary duties.

It sounds like you would need an attorney letter to put the CFO on notice and pressure him to negotiate a settlement with you.

If the CFO is reasonable this would be a straightened matter with low legal cost. Contact me directly.

Roman R. Fichman, Esq.

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Answered on 9/08/16, 10:01 am


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