Legal Question in Business Law in Ohio
Family business deception
With a verbal agreement that my brother & I would be partners, my parents decided to sell their retail property & business to us at 1/2 its value. My brother & I formed a Limited Partnership &, because he lives close to our parents & the business, we agreed that he'd take care of the required paperwork & keep me informed.
Everything was going well. Prior to the sale, my brother had already taken over management of the store & I was encouraged to purchase a truck, equipment, merchandise, & to send some cash. I did all of this.
Now I find out, that on May 3rd, my brother cancelled our Limited Partnership & formed an LLC by the SAME NAME, listing only himself as an authorized representative. A couple weeks later, by using the same name as our partnership, my parents were lead to believe that they were selling their business to their two children, when in fact they were deceived into selling it to just him. They would not have sold, had they known the truth.
Although he says that I�ll be repaid for the money I have spent, I am out of the business. My parent�s wishes have been broken & they are out of the additional $400,000 that they could have received.
Do my parents or I have any recourse?
2 Answers from Attorneys
Re: Family business deception
Dear Deceived Reader,
You and your parents have, definitely, a strong basis to resolve this decption by your Brother. It will require a great deal more detailed information and facts than what you've described, and will require application of law, including legal action to right the wrongs complained of. Pleae retain an experienced Attorney ASAP. You may call me for more information if you'd like. Good luck.
Sincerely, J. Norman Stark, Cleveland, Ohio.
Re: Family business deception
It is very likely that both you and your parents have recourse options. This is a complex, fact dependent situation. You should immediately consult with a knowledgeable business and litigation attorney. I'd be happy to discuss this matter in more detail.
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