Legal Question in Business Law in Texas

Partner Defrauded Company

I am in the automobile sales business in texas.

I have been in business for aprox. 5 years and had a friend join me in business around 4 years ago. I have know him and his family for most of my life and trusted him.

After a couple of years we were trying to find a way to reduse our overhead and made a deal. This friend who I will call R. and his wife who I will call B. made a deal with me to buy and sell cars on ther own behalf and keep monies and profits in their own bank account and pay the Company Rent.

Well after doing this for about 18 months I come to find out they are operating at a loss and owe for many cars and also the titiling of these cars. I as of 2 weeks ago informed them I no longer want to have any business dealings with them. And I have not heard anything from them.

Now everine is coming to me for their title and registration, and I did not recieve the monies.

What do I do? I have been trying to pay this off but I dont think I can come up with enough money fast enough.

I'ts really a bad situation for me I is effecting my whole life. I hope someone out there can help.--name removed-- D.

Also State of Texas is involved through complaints from customers and the fine is $500.00 per case.


Asked on 9/12/05, 1:25 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Partner Defrauded Company

If you have that agreement in writing, you're covered. If you don't, and they were selling using your facilities and paper, you're on the hook for their bad actions.

About all you can do is sue them for your damages, for whatever that may be worth.

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Answered on 9/12/05, 1:35 pm

Re: Partner Defrauded Company

I'm going to assume from your fact pattern that you don't have a written contract. If you did, you'd follow the terms of the contract. Right now you need to do the following (1) damage control -- form a game plan to get the people some relief so they don't sue you and (2) go after the folks that defrauded them. If they've already sued you, you need to bring in your "friends" and hash this out in court.

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Answered on 9/12/05, 1:41 pm


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