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We have a partnership dispute with a retired partner. He has…

We have a partnership dispute...
We have a partnership dispute with a retired partner. He has overdrawn on his capital account and refuses to pay back the overdrawn amount. We had a verbal agreement which reflected a change in hours and thereby changing the split in profits. He says he has no recollection of this agreement. We did have a working agreement in place that was only signed after the change in split of profits. In this agreement it states that split of profits will be on hours worked. On this basis he would not be entitled to as big a share. How could one proceed with this? He is stating that as he has no recollection of this change one would remain on the previous split.
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6/25/2010
Senior Partner
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Did he sign this new agreement? Is that agreement expressly a variation of the profit split in the partnership deed?
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Customer reply replied 8 years ago
Yes the agreement was signed by all parties. It was drawn up at the start of the partnership 5 years ago. We had 3 different splits in profits over the 5 years depending on the time worked - the first 2 were written down and visible in the accounts breakdown. The third was not.The split was passed on to our accountant at the conclusion of the meeting in August 2008. Although obvious in the 2009 accounts he is now disputing that this was agreed on. The agreement was only signed after this meeting in 2009. It does not give the split in this agreement but rather states profits will be split on hours worked. The hours worked is obtainable from records kept at work documenting work done by all of the partners.
sorry but you are not being very clear . you have partnership agreement entered into in 2005. Does this set out the split in profits? You say there were three subsequent agreement but the last was not written down then you say the agreement was signed in 2009 - the original agreement or the agreement about 2008 profits?

When did he retire ?
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Customer reply replied 8 years ago
<p>There is no split in profits in the agreement. It states that profits would be decided on hours worked.<br />There is only one agreement.<br />Over the 5 year period we had 3 separate split in profits.(depending on the hours worked by each individual) These were not featured in any agreement but rather on correspondence from the accountant demonstrating the split. <br />The last split is not demonstrated in any form at all but was a verbal agreement by all parties in August 2008.<br />he retired in January 2010 but has only received the accounts now. </p><p>As we have a signed agreement that states profits will be divided according to the hours worked. As he is disputing the outcome of the meeting we feel that the signed agreement can supersede the verbal agreement. Though we are not looking for any further remuneration the division of profits according to hours worked is not in his favour - please comment.</p>
If he signed the agreement then he is bound by it and if this says profits are split by hours worked then that rebuts the assumption that profits are split according to shares. However if the agree on the actual basis of allocation was oral and he denies it , it is a matter of evidence and whether in a court he would be believed or you would . if the effect is that if the deed prevailed he would get less than his allocation then it cannot be in his interests to dispute it. Certainly the hours basis would prevail if nothgin else is shown to have been agreed.
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Customer reply replied 8 years ago
Thanks for that. He has written a letter claiming to feel the matter to be closed and goes on to suggest he still has some influence in the community. To us it is a suggestion that he is warning us to let the matter be otherwise he could badmouth us. If we were to resolve this are there agreements preventing slander?
You can always put a clause in a settlement agreement requiring him not to discuss the partnership or its affairs which would be enforceable
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