Legal Question in Business Law in Texas

business partnership

If a 50% partner starts up a competing company while still a partner in the original company prior to a proper ''split'', as the other partner, do I have any recourse due to ''abandonment''?


Asked on 8/16/07, 5:09 pm

3 Answers from Attorneys
Johm Smith tom's

Re: business partnership

I agree with Mr. Grissom.

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Answered on 8/16/07, 11:01 pm
Jason Charles Ciarochi Ciarochi and Associates, PLLC

Re: business partnership

In broader terms, If A and B are in a patnership and B then forms a competing partnership with C, then A is allowed to demand an accounting, complain about, or sue B.

Individuals have a right to work or affiliate (or not affiliate with) other individuals, but B gave up his right to compete with A while B had a partnership agreement with A.

B may be found liable for certain debts that A had to bear as a result of the partnership. If B used A's model, client base, and plan in B's business with C, then B is most likely liable to A for the value of those profits.

Written correspondence and the course of dealing with the parties helps determine who is in the right and why.

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Answered on 8/17/07, 12:21 pm
James Grissom Law Office of James P. Grissom

Re: business partnership

You may be entitled to your share of the new business for breach of fiduciary duty. If it's worth it, contact a lawyer.

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Answered on 8/16/07, 5:27 pm


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