Legal Question in Business Law in Texas

Defamation of Character

I signed a purchase agreement with three parties who bought a percentage of my company of which I'm the sole LLC member. The sole purpose of selling a percentage of my business was to legally solidify/secure my company's employment with a commercial real estate developer who agreed to have me solely represent his commercial properties for leasing, sales and investments. I was given office space with in his new headquarters and all ads on his properties would list my name and number. Around July 2004, I began confronting the man who orchestrated the agreements regarding my disapproval of some personal and professional issues. Some of which included inviting a 20 yr old female vendor to a strip bar which I warned him about, bounced checks written to me ad other vendors, and his constant request for work to be performed despite outstanding balances for previous work. On August 1st, 2004, he meets me at the headquarters and informs me I no longer work with him and the developer. The developer says its nothing personal, that he is acting on my partner's recommendations. I have since learned he has embarked on slandering my name and told lies to create doubt with the developer and others. Can I pursue a slander suit?


Asked on 8/31/04, 3:40 pm

1 Answer from Attorneys
Charles White Charles G. White

Re: Defamation of Character

Your situation is an excellent example of why one should never succumb to the temptation to sell a controlling interest in his company to others without having some kind of adequate protection against the the potential result of having giving his company away for nothing.

This may be more than mere slander (which has only a one-year statute of limitations). It likely involves varying degrees of breach of fiduciary duties to your company and the owners, fraud, and other potential causes of action. Your concerns cannot be adequately adressed on this forem.

You may want to contact me through my web site additional information.

Charles G. White

http://www.cwhitelaw.com

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Answered on 8/31/04, 4:15 pm


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