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TexLaw, Lawyer
Category: Employment Law
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Experience:  Contracts, Wrongful termination and discrimination
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I owned a cleaning company in California, sold my business

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I owned a cleaning company in California, sold my business to my partner a year and a half ago. One of our independant contractors that worked for us filed a labor board claim going back 3 years. Myself and my partner were personally named in the complaint and the LLC.

Our purchase agreement says he is responsible for all claims past present and future. How do I get my name off that complaint?

Unfortunately you cannot simply remove your name from the complaint. You will need to demand indemnity from your partner to pay for your defense and for any damages that may be assigned against you in the trial. The fact that you have contractual indemnity does not protect you from being named in the lawsuit or having to participate in the lawsuit. It only protects you from the costs of defense and the costs of any damages assessed against you.

If your partner will not agree to take up your defense, you will need to assert a cross claim against him for indemnity pursuant to your agreement.

What this means in the meantime is that you probably need to hire a local attorney to handle filing an answer for you and to present your indemnity claim to your partner, unless you have already spoken with him and he agrees to present everyone's defense.

Please let me know if you have further questions on this matter. Please also consider rating my answer positively so that I am compensated for my work by the website.

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