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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117370
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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UNJUST ENRICHMENT? I own a nightclub and made a deal with

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UNJUST ENRICHMENT? I own a nightclub and made a deal with a promoter. He, my Sat night promoter and I would each invest 5g to remodel and improve the club. This was an investment, not a loan which all would benefit. My Sat promoter from increased admissions he received, myself an improved club and increased sales and I agreed to give the new promoter the door admissions from Fri and Sun which he was obligated to promote for only $400.00 weekly rent. There was no written contract or discussion regarding repayment. He gave me used security cameras in exchange for the first 2 months rent.
The first night I gave free drinks to attract customers and 3 bottles of liquor to the promoter for VIPS. He himself drank all night for free, became drunk, hitting my security when he told him he could not drink after 2:00, legal cut off time, then shoved my manager and made a scene in front of all new employees claiming we didn't know how to run a club.
I spoke with him the next day and hoped everything would work out.
He only opened 1 Sunday, no one came but I paid full staff. The next Fri he took 3 expensive bottles of liquor telling the bartender to apply against what I owed him. His Fri began slowing and the last one he himself did not come. I texted him to see if he wanted me to collect the rent from his doorman. He returned texts saying he had put money in which he figured worked out to 10 months free. I told him he wasn't living up to his promoting end and that was never the agreement. I only saw additional forthcoming problems and felt the agreement should end. He said he would be by the next day for any equipment and every last nail he paid for. I told him to provide me with receipts and an account of admission money he had collected and I would pay him any difference, He said he only owed $400.00 a week and refused to account for the money collected..
He believes he should be repaid for what he invested and derive the benefit from my Sat promoter and my investment. I told him one or the other but not both. He made good money from the door at $10.00 per person.
I have been served with a lawsuit claiming:
1. requests an order of the court for a writ of replin covering (description of claimed property sufficient to make proper its identification)
2. I am wrongfully detaining his property which came into my possession by virtue of contract which has been rescinded. I am detaining it for simple conversion.
3. is an action for unjust enrichment
4. that he provided $9500.00 in materials and labor pursuent to the parties contract for improvement and I accepted materials and labor and benefited and his expense.
5. If I retain value of goods and services I am unjustly enriched.
What is the law regarding the above scenerio and my best defense? Is there anything I can countersue for?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
First, if you are a business entity, the law says you must be represented by an attorney and cannot represent your business in the lawsuit as it would be considered the unauthorized practice of law. So you MUST get an attorney to answer the suit or the answer would be thrown out if he is suing your business.

Second, you have a breach of contract claim against him, since there was an oral contract. Generally, under the statute of frauds, all contracts must be in writing to be enforced, but when one party performs on an oral contract (as happened here) then an oral contract can be binding as an exception to the statute of frauds. You will bear the burden of proving the nature of the contract. Also, if he has benefited from the club business and has not paid as he agreed, then you would also have a claim for unjust enrichment against him.

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Customer: replied 5 years ago.
My biz is a corp. I can't represent it as an officer? He is suing my 2 corps, one that runs the bar, the other that owns the building and me personally,
Expert:  Law Educator, Esq. replied 5 years ago.
You can only answer the suit for you personally, the corporations you cannot answer for, so you must have an attorney for those entities and as you must have an attorney by law, you may as well have the attorney represent you personally as well.

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