Legal Question in Business Law in Washington

Business fraud?

My father in law died 1980. Was business partner with another man who continued to use the business name and license until 1992. Is this lawfull? An assignment of wages was granted to my mother in law against this person in 1984 but has never been collected on.


Asked on 4/06/07, 2:58 pm

1 Answer from Attorneys

Susan Beecher Susan L. Beecher, Atty at Law

Re: Business fraud?

Regarding whether the partner could continue to use the license and the business name, much depends on the facts of the case. Was this a true partnership or was there actually a corporation? Was there any kind of buy-sell agreement between them and if so, what were it's terms? What kind of license is involved?

Unfortunately, the questions are probably academic, because at 27 years (15 years if you can alledge an ongoing infringement), you are past the statute of limitations to make a claim.

An assignment of wages normally refers to a voluntary arrangement where the debtor is an employee, so I'm wondering if that is really what your mother in law had. If so, and if no suit has been filed to collect under the agreement, at 23 years, it is almost certainly too late now. If, on the other hand, this was a judgment handed down by a court (a garnishment of some kind), it would expire after ten years unless renewed within the 90 days prior to expiration. It would only still be in effect if it was renewed in 1994 and again in 2004.

Most likely, there was some sort of claim at the time. Unless the business was insolvent (which doesn't sound like the case, since it continued to operate at least another 12 years), the beneficiary of your father in law's estate (I'm assuming your mother in law) should have been entitled to something for the father in law's interest in the business. However, unless there is a judgment (renewed twice) still in force, it is probably too late now, based on the facts you have given.

However, if the amount at stake is significant, you may want to run the full details by an attorney just to be sure you left nothing on the table.

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Answered on 4/06/07, 3:45 pm


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