Legal Question in Business Law in New York

Partnership Split

In July 2007, my boss left a partnership offering to buy out the business. He is a financial advisor and was solely responsible for all the clients he serviced. The majority partner acted very poorly, telling clients my boss took money from the business and made up child like stories to clients telling them things that were not true (defamation). There was no written contract, ever. My boss worked with this guy for about 5 years. The majority partner owns a CPA firm and fed some of the business, which is why my boss wants to settle fairly. At this point, it's been over a year and the former partner continues to compete to get back the clients, and my boss made an offer in December 2007, which was never replied to. The former majority partner has neglected to pay either of our Simple IRA employer contributions and has not sent my boss his K1 for 2007 making it impossible to file by the 10/15 deadline. If he does get a K1 (unlikely), it will most likely not be reflective of actual payments to my boss in 2007 as it will most likely be ''padded'' to show payments former partner feels my boss took by leaving with the clients. My bosses attorney says, pay him zero at this point. Any feedback on legal repercussions on that?


Asked on 9/22/08, 11:23 pm

2 Answers from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Partnership Split

Your boss has a lawyer; therefore no other lawyer can ethically offer advice on this matter.

That was for Boss. This is for Employee. This is your boss's business, not your business. You need to back off and let Boss disentangle himself. I know it's painful, Employee, but butt out. Partnership splits can get very messy and the mess can be made a LOT worse by well-meaning employees getting into the picture. Even if you're Boss's mother, wife, girlfriend, LEAVE IT ALONE. Boss will come through this and be the wiser for the experience.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 9/22/08, 11:54 pm
Mark S. Moroknek Kelly & Curtis, PLLC.

Re: Partnership Split

Your boss needs to have a lawyer involved. If there was no partnership agreement, he can establish these things by testimony. It is a breach of fiduciary duty for one partner to hurt the partnership interests while it is in dissolution, which is what happens when the partners split up.

It sounds like he has a defamation claim as well. If you are in the NYC metro areawhy not drop me a line?

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Answered on 9/23/08, 3:47 pm


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