Legal Question in Business Law in New York

Re: Absentee Partner

If your partner wants out, you need to negotiate a settlement agreement. In the interim, no one should work for free. To the extent you perform services for the LLC, you should be compensated.

Re: Absentee Partner

Good Day-

Much depends on the partnership agreement but each has a fiduciary duty to the other.

It would appear that a dissolution of the partnership might be in order but there may be something is the agreement that sets out certain parameters.

I know that it is a weak repsonse, but to give such advice in the absence of the actual agreement may lead to major difficulties.

Feel free to contact me.

Good Luck

RRG

Re: Absentee Partner

Under New York law, partners owe one another a duty to act honorably and to take no action to the detriment of the other. It certainly seems that your partner has ignored his obligations in this regard.

The most logical course would seem to be to dissolve the partnership and the partnership agreement likely has provisions that would govern how this is to be done. In order to give you meanignful advice as to what your best course of action is, a review of the underlying agreement would be necessary. Please feel free to contact me to discuss this further. Good luck.

(212) 973-0839

Re: Absentee Partner

First, be careful of your terminology. If this is an LLC, it's NOT a partnership. It's governed by very different rules, specifically New York's LLC Law and the LLC's operating agreement.

You obviously want out of this relationship, with whatever money you're entitled to. There are two options. (1) negotiate a deal with your associate and his loudmouth lawyer in which one of you buys the other's share; or (2) dissolve the LLC, either voluntarily or by court order, and divvy up the assets.

I can't tell you today which course makes the most sense for you. You have to assess that for yourself, perhaps with objective input from someone more detached from the fight.

The relative belligerence of the other lawyer seems to be an issue for you. Fortunately, it doesn't necessarily require an equally obnoxious mouthpiece to offset someone like that. It's probably a scare tactic, easily exposed. If not, he's probably letting his overaggressive nature compromise the advice he gives to his client, which can work to your advantage.