Legal Question in Business Law in Tennessee

breach of partnership

I am 50% owner of cash auto rental business(for app.10 yrs.) I am working partner and original founder. My partner bought his interest from my previous partner app. 4 yrs.ago. He is attempting to rent his own vehicles to company customers,using company resources(employees,maintenance supplies,contracts,not to mention stealing customers). He has these vehicles registered in our company name,and as far as I know, there is no insurance on them. I believe my company insurance would have to cover them in case of accident,etc. He isn't turning over any proceeds of these rentals to company,and refuses to sell these cars to the company. He is also trying to set up a rental business on the same property in a different building. He is attempting to run my out of business. He wants the whole business,but refuses to buy me out. I am considering sueing for loss of income,

sabotage, direct competition,etc.Please Help


Asked on 4/25/01, 3:01 am

1 Answer from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: breach of partnership

There are a number of potential causes of action you may have, including breach of fiduciary duty, conversion and unfair competition. The crux of your complaint, as you have pointed out, is that while in the position of partner and while utilizing partnership assets, he has been diverting the benefit of those assets to his own benefit. There are a number of steps you can take at this, including an action for an accounting. However, anytime you are essentially dissolving a long-term business relationship, you need to consult an attorney to guide you through the process.

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Answered on 6/18/01, 12:09 pm


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