Legal Question in Business Law in New York

Re: Assets left over in failed business

Is it fair? Probably not.

Is it legal? That depends on your partnership/operating agreement (do you have one?). Your business entity type may also have some bearing on whether or not it's legal.

Is your partner a jerk? Yes. You've just seen her true colors, and they are the colors of avarice and greed. It's too bad, but it happens really quite often.

You need to either hire a lawyer to go through your partnership/operating agreement with you to see whether you have a case and perhaps help you sue your former partner under the contract (if the dollar amouht to which you may have a claim falls within its jurisdiction, you can take the matter to small claims court yourself and not hire the lawyer to handle that matter), or consider it a lesson learned and move on. The reason you would not bother to sue is that it could very well end up costing you more in attorneys' and court fees than you would recover; this would make suing her really not worth it.

In any case, I'd ditch this friendship. Someone who behaves this way isn't worth your time.

Good luck.

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