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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111683
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I went into partnership with a guy from the UK, who owns a

Customer Question

Hi
I went into partnership with a guy from the UK, who owns a strip mall. He basically wanted me to open a convenience store, he would fund it and if all went well have 50% of profits.
He used his accountant. He didn't put anything in his name because he was in UK.
So bank account, Lotto, All business licences etc are in my name as is the lease.
Hi accountant knows that he funded it and just didn't put his name to things.
It was agreed I would take out $600 a week as a wage
Thing is the business hasn't been doing great and was robbed 6months ago of approx. 4500k, which included some 4k of lotto money.
Since then I have been struggling .
Anyway, If we close and have money outstanding to Lotto and sales tax. will I be liable or can I make him pay
Bearing in mind that he has the money wheareas im struggling to live right now?
Or will it be all down to me, is there anything I can do?
Thanks
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am afraid that if there is no written contract agreement, you would have a hard time (not impossible time) holding him liable for the losses. Legally, if you can prove the existence of the contract and the terms, you could seek to sue him in court, but would have to sue him in the UK to get any personal jurisdiction over him, as the FL court would not have jurisdiction over him as a defendant who lives in the UK. You would have to sue over an oral contract, prove the terms of the contract and sue for reimbursement of his share of any losses you had to pay out for lotto and taxes.

Customer: replied 1 year ago.
Well I have emails pertaining to the facts. Plus his accountant knows of the situation.
He has an American company that funded the store. Would that make any difference ?
Thanks
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

If the deal was with the company, then you can sue the company where it is located in the US. If it was a personal deal with the individual, you have to sue him where he legally resides.

Customer: replied 1 year ago.
Ok many thanks
So all the stuff in the store then equipment products CCTV everything is mine if he has no claim to it ? I could sell it and use it to oay debt off ?
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

You would need to sell off the equipment to pay debts. If he is indeed a partner, then he would be entitled to share in the assets after sale of them and payment of the debts.

Customer: replied 1 year ago.
Because he's the landlord of the store I'm worrie he wil try to get me out before I can sell the stuff to pay for debt
That's all I want to do he can have the rest
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

You need to sell the items off to pay debts, the law requires you liquidate property to pay off debts before the owners can take anything from the business.

Customer: replied 1 year ago.
I understand that
But say he forces me out as the landlord and doesn't let me get anything to sell ?
Can he do that ?
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

Yes, he can and then you have to sue in court to force him to sell and to pay his share of the debts.

Customer: replied 1 year ago.
but if as you say I can't prove his a partner and can't sue him over here How can I sue him in court for his share ?
Can he force me out for no reason if I'm still paying the rent ?
If I shut the doors and I can't sue him as a partner. How do I get the Assets to pay debts if he don't let me back on premises
Sorry. If I'm not understanding you correctly
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

You would have to sue him in the UK, unless he comes to the US to shut you down and you can serve him while he is in the US. He cannot force you out if rent is up to date, that would be an unlawful eviction.

If he tries to lock you out, then you would have to sue in your local court against the property company since they cannot legally evict you.

If you remember I told you above, there is a distinction between him personally and his US company. His US company is the landlord so you can sue them in the US.

Customer: replied 1 year ago.
Ok great so as long as rent up to date He can't get me out. But say I have to close and the lease is still in force
I guess he can take me to court over that.
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

Well, that is an interesting point, if he is the landlord and co-owner of the business, he would not be able to take you to court for breach of lease, he would be essentially suing himself, even though it is his company suing your company, he is owner in both companies and that would not make any sense and would be a breach of duty to your company.

Customer: replied 1 year ago.
Thanks I guess that goes back to the point if I can prove his a partner
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your reply.

Correct. He cannot be a partner for one thing and not for something else.

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