Legal Question in Business Law in Wisconsin

Breach of Contract - Investment Repayment

Invested $40,000 in a business I co-owned in Wisconsin in June 2001. I moved from South Carolina to Wisconsin to operate the business from August 2001 to December 2001. Business Plan outlined a $2,000 per month salary which was not paid to me and the reason I chose to leave the business operations to another partner (mutually agreed). Two other partners enlisted the aid of an attorney they paid for (I did not have the means) who drew up a contract outlining repayment of my investment that indicated $2,500.00 would be paid to me on February 8, 2002, (which I received) and the balance of $37,500.00 be paid to me on or before December 31, 2004. I have not received a dime of the $37,500.

I have called one of the partners repeatedly over the last three years and he keeps promising to pay but hasn't. Due to these conversations and the hope that he would commit to paying me, I have not yet sent any correspondence by mail (certified letter) requesting they make payment to me pursuant to the contract.

The accountant for the business is the daughter of one of the partners and became a partner when I left. Each of the partners owns their own businesses separate from the one I owned and invested with them. What are my options?


Asked on 5/14/05, 3:40 am

1 Answer from Attorneys
Paul Piaskoski

Re: Breach of Contract - Investment Repayment

Without seeing the contract where they agreed to repay you, it is difficult to know all of your options, but if you have a written contract that they are going to repay, then you can certainly file suit to collect your money. One of the issues is whether or not the agreement was signed on behalf of the company alone, or did the individual investors sign personally as well. If the business agreed to make the repayment, then the question is whether or not the business has any assets to pay that debt.

Another issue is the payment of attorneys fees for the collection action. If the repayment agreement is silent on the attorneys fees, then you will have to pay your attorneys fees, which will reduce your recovery.

Having something in writing always makes it easier to collect, but there are still other issues that need to be addressed.

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Answered on 5/14/05, 5:28 am


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