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Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 6846
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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Our company was formulated in January 2016. There are 3

Customer Question

Our company was formulated in January 2016. There are 3 partners our agreement is equal share. one partner gave out 40K. the company wasn't making a lot of money. the 40 k was used for salary/bills. In July 2016, 1 partner who did not put any money, decided to leave because the company is not making money. 2 wks ago, she demanded to be paid for the service she made. I as part owner who also work like her was also not paid, but the partner that invested the 40k decided to revive the company. We now have another partner to help work for the company to work. Currently it is restructuring and current receivables including the work she(the one that left) did in July- payments were not received yet because it is being restructured. I have emailed her (because she has threatened me in her email) that as soon as all her visits are billed, the company will pay her visits only that as of this time we don't have the capacity to pay. Today she emailed again and threatening us about labor code and she is demanding that she has to collect her pay because it is the company's responsibility to pay her. My question is Is she right? does she have the right to sue?
Submitted: 3 months ago.
Category: Legal
Expert:  Irwin Law replied 3 months ago.

My question is Is she right? does she have the right to sue?

Anyone can sue for anything and you don't need a right to do so. The situation you describe is so complicated from the business standpoint that it's impossible to say whether or not that partner has any right to charge for her services. I would have to examine all of the documents, and depose all of the witnesses to determine what the rights of the parties are. One thing is clear though, the company does not have the financial wherewithal to litigate with that partner. Therefore, your only realistic option is to work things out with that partner. That might be that partners only realistic option also.

I hope that this answers your question. If not, please feel free to send me a reply for further information. Experts on this site (myself) are compensated ONLY if the customer (yourself) "rate" or "accept" the answer.

Please rate the answer so I may receive credit. There is no additional cost to you. Thanks for your understanding and for using JUST ANSWER.

Expert:  Irwin Law replied 3 months ago.

Hello again. Do you have a follow-up question? Experts on this site (myself) are compensated ONLY if the customer (yourself) "rate" or "accept" the answer.

Please rate the answer so I may receive credit. There is no additional cost to you. Thanks for your understanding and for using JUST ANSWER.

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