Legal Question in Business Law in New York

Statute of Limitation

I incorporated a consultancy company in NY with a friend in 1991. We were both 45%, 45% shareholders . 10% was a silent partner. My friend was the president & I was the VP/treasurer. In June 1992, we signed a large consulting contract with a client (Client X), whereby we would receive 5% commission of sales from client x, for life. An exclusive account was setup in Citibank to deposit the consultancy fees. After a few months, the consultancy fees stopped coming to the exclusive Citibank account. At that time, my friend told me client X reneged on their contract & we are no longer in business with them. At that point, my friend & I parted ways & we had no other contact with each other. I also had no other info about the day to day activities of the company we incorporated.

About 3 months ago, I found out that my friend took client X to arbitration in Sweden in 2002(there was a clause in the contract that all disputes be taken for arbitration in Sweden). The basis of the case was the consultancy contract we signed in 1992. In 2003, he won the case, & had the judgment/award go directly to another Canadian company he had incorporated. Can I sue my friend/Canadian company for 45% of the award? statute of limitation? thank you


Asked on 10/24/07, 8:14 pm

1 Answer from Attorneys
Christopher Hoyt The Law Offices of Christopher W. Hoyt

Re: Statute of Limitation

You have a number of issues that need to be addressed. You should consult with an attorney, who can help you determine what rights you have, where to bring legal actions (if applicable) and also help you determine the relevant statute of limitations. A lot will depend on any agreements you had with your partner, what the bylaws of the corporation stated, how your association with the company ended, and a number of other factors. Please feel free to contact my office if we may be of any assistance in this matter.

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Answered on 10/24/07, 9:34 pm


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