Legal Question in Business Law in Texas

partnership dissolution dispute

I opened a delivery pizza place with 3 other friends 3 months ago.

For lots of reason I decided to quit the partnership. They only want to give me back the money I put on the business and are not considering all the time and energy I spent and all the things I did during those 3 months to make the business a reality. And I did a lot. Since the business is new and there is no way to calculate the annual profit yet, I suggested an appraisal of the business so I can get a fair part. The business has a lot of potential to grow. It is legal to use an appraisal to determine every partner part? What can I do to get a compensation for all the work I did ? Thanks.


Asked on 8/22/05, 12:40 am

2 Answers from Attorneys
Randy Fisher Fisher Law Office

Re: partnership dissolution dispute

Your valuation method (an appraisal) is the best idea. Technically, when a partner exits the partnership ceases to exist and has to reform, so there is leverage. That would mean you have to give notice on any loans, etc. Otherwise, you are still liable as a partner.

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Answered on 8/22/05, 9:34 am
Peter Bradie Bradie, Bradie & Bradie

Re: partnership dissolution dispute

Your leaving forces a partnership dissolution, although the remaining partners can buy you out and continue the business.

The dissolution and wind-up requires comparing the assets against the liabilities, and each partner takes their share of what the balance is. Typically with a new business, the liabilities outweigh the assets and, as a result, you may be on the hook for a your share of the deficiency.

You are not entitled to any extra compensation for the work you put in, since that's supposed to be covered by your share of the partnership profits, if any.

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Answered on 8/22/05, 10:33 am


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