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Unread 03-01-2011, 10:42 PM   #1 (permalink)
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How to get rid of a business partner

Anyone have any suggestions that are legal? I'm in a 4-way partnership and the one partner who contributes nothing is demanding everything. I've got to get rid of his ass or the company will go under. I'm just about to the "**** it" stage and dissolving the whole thing, but that'll leave me and one other partner without income for awhile. We're about to the point of telling him to take a $1,000 bonus and get out, or refuse it and we disband and he gets nothing. I might add that he has nothing invested.
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Unread 03-01-2011, 10:51 PM   #2 (permalink)
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Re: How to get rid of a business partner

Take the grand to a business attorney to check the contract and advise you on how to get out of it.

If you don't have an official contract tell him to hit the road and be done with it.
Then go with the responsible partners and make money.
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Unread 03-01-2011, 11:06 PM   #3 (permalink)
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Re: How to get rid of a business partner

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Take the grand to a business attorney to check the contract and advise you on how to get out of it.

If you don' have an official contract tell him to hit the road and be done with it.
Then go with the responsible partners and make money.
I gotta agree. The contract (if any) is the place to start
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Unread 03-01-2011, 11:42 PM   #4 (permalink)
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Re: How to get rid of a business partner

Have you talked to the other two partners to see where you stand ??
Who's got who's back etc etc ????
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Unread 03-02-2011, 12:16 AM   #5 (permalink)
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Re: How to get rid of a business partner

How to get rid of a business partner?

$10k payment

Short Meeting W a professional "stranger", details discussed

A phone call from professional "stranger" with the word "done" then a dial tone.

$10k payment

Simple transaction.
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Unread 03-02-2011, 01:39 AM   #6 (permalink)
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Re: How to get rid of a business partner

take him to small claims court or whatever. if it's equal share he's only a third of the deal and would lose nearly guaranteed.
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Unread 03-02-2011, 04:07 AM   #7 (permalink)
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Re: How to get rid of a business partner

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Originally Posted by RiverRatt View Post
Anyone have any suggestions that are legal? I'm in a 4-way partnership and the one partner who contributes nothing is demanding everything. I've got to get rid of his ass or the company will go under. I'm just about to the "**** it" stage and dissolving the whole thing, but that'll leave me and one other partner without income for awhile. We're about to the point of telling him to take a $1,000 bonus and get out, or refuse it and we disband and he gets nothing. I might add that he has nothing invested.
Is there substantial money involved? Is it an actual company with shareholders and so on?

Can you describe the business?

Is it possible to simply close the company and then reform it with the 3 partners?

I have been in business for years and had actual companies and partnerships. PM me if you want.
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Unread 03-02-2011, 05:40 AM   #8 (permalink)
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Re: How to get rid of a business partner

Legal advice is the way to go, I am not sure of US law, but here in the UK there are implied contracts due to service and roles undertaken even if not formally set out in contract.

This needs to be checked properly or it could be more expensive and more hassle than it ever needed to be. Good luck.
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Unread 03-02-2011, 10:39 AM   #9 (permalink)
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Re: How to get rid of a business partner

Depends on the partnership agreement if there is one.

I've only had one experience with such an agreement so far, but I was the primary, so when he wanted out to do something else, I didnt care too much.
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Unread 03-02-2011, 10:50 AM   #10 (permalink)
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Re: How to get rid of a business partner

Cut his brake lines.
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Unread 03-02-2011, 10:58 AM   #11 (permalink)
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Re: How to get rid of a business partner

Hi-Voltage
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Unread 03-02-2011, 11:11 AM   #12 (permalink)
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Re: How to get rid of a business partner

Go to the Liquor Store and purchase one large bottle of Vodka. $20 ($30, if you want decent)
Take plastic cup, fill, and hand to him as necessary. $.04
When common sense is gone, drive him to nearest, sleaziest streetcorner you can find. $10 (gas)
Set him up with a prostitute. $100
Photograph acts of deplorable nature and have printed. $2.50
Present evidence to him, threaten to go public, offer a 'way out'. $0

$142.54
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Unread 03-02-2011, 11:23 AM   #13 (permalink)
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Re: How to get rid of a business partner

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Originally Posted by eljeffebrown View Post
How to get rid of a business partner?

$10k payment

Short Meeting W a professional "stranger", details discussed

A phone call from professional "stranger" with the word "done" then a dial tone.

$10k payment

Simple transaction.
I might add that I'm Stranger than Jeffe.

Well, Maybe......

TWIN
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Unread 03-02-2011, 06:32 PM   #14 (permalink)
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Re: How to get rid of a business partner

Tell Twin that said Partner just stood on his lawn.

Problem solved.
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Unread 03-02-2011, 06:54 PM   #15 (permalink)
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Re: How to get rid of a business partner

I'll have Jerky for the rest of the year.....


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Unread 03-03-2011, 01:41 AM   #16 (permalink)
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Re: How to get rid of a business partner

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Unread 03-03-2011, 08:32 AM   #17 (permalink)
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Re: How to get rid of a business partner

Nothing invested
Does not contribute
Is about to sink the ship


... Talk to him man to man first and be straight with him. If that don't work, have an "intervention" with the other partners.

If that don't work, cut his brake lines.
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Unread 03-03-2011, 10:04 AM   #18 (permalink)
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Re: How to get rid of a business partner

The hilarity of the back-alley solutions aside, I've got to pipe in on this.

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Depends on the partnership agreement if there is one.
Exactly right. IF you did this the right way and entered into a proper Partnership Agreement and IF what you have is indeed a proper Partnership, there will be a clause in the Agreement regarding its Dissolution and each partner's rights, responsibilities and liabilities based on contribution, capital or otherwise. THAT, and that alone, is going to determine what needs to be done to get him out of everybody's hair. Be advised, though, this usually involves either buying him out or filing a suit in the correct court (more on that below) to obtain an injunctive order resolving the issue.

In either case, this also usually results in dissolution of the existing partnership and the formation of a new one with the remaining partners, unless the Partnership Agreement allows for some other continuation of the current business interest, which is actually pretty rare. This is also why sub-chapter S corporations or LLC's are always a better alternative to Partnerships for small business interests; those business entities survive the loss of a partner/shareholder, regardless of what the circumstances of that loss are, where as Partnerships, by definition, do not.

Now, if you didn't enter into a proper Partnership Agreement, well, all that money you think you saved yourselves not going the proper route is about to get spent undoing it as, now, dissolution/buy out/whatever is going to be based on everyone's "equitable interest" in the partnership. If this business interest has gone on for some time and the three of you established a pattern of tolerating this last guys lack of contribution (capital or otherwise) over time, but continued to treat him as a "partner" within your particular relationship and framework, you might have a real problem on your hands and a lot of potentially uncomfortable explaining to do.

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Originally Posted by diesect20022000 View Post
take him to small claims court or whatever.
Wrong.

Small claims courts do not have jurisdiction over Partnership Dissolution, period, end of story. Small claims courts exists to make determinations on simple breach of contract, usually under $2,500.00, "book account" cases and sometimes include a Landlord/Tenant Division. Determining the meaning and application of contractual relationships, equitable dissolutions, business agreements and relationships is most definitely NOT in their purview, ever, anywhere, at any time, for any reason.

As for the "whatever" portion of the rather dodgy legal advice you provided, these matter are handled by the General Equity/Chancery Divisions and I don't care what Judge Judy, Judge Milan or Judge Joe Brown say to the contrary about it on TV after the mid-day soaps are over.

By the way, this is precisely why this type of litigation gets protracted, and you can read that as "expensive".

Quote:
if it's equal share he's only a third of the deal and would lose nearly guaranteed.
Wrong again. If the partnership has 4 partners, as was stated, he has a quarter interest, not a third.

Moreover, his percentage interest in the partnership has absolutely no bearing whatsoever on whether or not the other partners will be successful in getting rid of him or how the litigation would turn out at all. Do a little research on the claims/rights of and actions available to minority and/or oppressed partners/shareholders in these cases and you'll see very quickly that counting up people and deciding "whose gots more" is about the single, most unreliable method out there to determine, much less "guarantee", the likely outcome of a law suit or the interpretation of the meaning of a Partnership Agreement, other contract or dissolution of any business interest. Again, this is precisely why these matters are handled in the General Equity Courts and, please, don't give me some story about "how a guy you know" did this. I hear that all the time and there's always "more to it", believe me.

Sorry guys, but when I see "armchair lawyering" like this being doled out to somebody who has an apparently serious issue they need some real, accurate and reality based advice on, it really irks me. It's dangerous. This isn't comparing Eminence and Celestion speakers where an ad hoc opinion actually means something. More importantly, what I've posted here is neither meant as a primer on how to handle partnership dissolution nor as a Magic 8 Ball prediction on how this situation will turn out. The point of it was, this is serious stuff, it needs to be handled one way, and if you don't know what you're talking about, please, don't make half-assed guarantees somebody might actually rely on.

River Ratt, even if you read this and decide I'm full of it on all of this, it doesn't change the fact that if this is indeed a real, on-going, substantial business interest, what should be clear to you from all of this is that you and the other partners need to crack your wallets a little, go see an attorney who is experienced in these matters, get some real advice, the kind that someone is actually on the hook for once they've given it, and go on from there.

In any event, outside of the recommendations of the pretty funny cloak and dagger stuff, this is not the place to be getting reliable, legal advice on this.
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Unread 03-03-2011, 10:56 AM   #19 (permalink)
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Re: How to get rid of a business partner

Obviously not, Michael.

Definately need a consultation with some counsel.
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Unread 03-03-2011, 11:22 AM   #20 (permalink)
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Re: How to get rid of a business partner

Michael I thought YOU were an Attorney?

TWIN
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Unread 03-03-2011, 11:27 AM   #21 (permalink)
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Re: How to get rid of a business partner

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Michael I thought YOU were an Attorney?

TWIN
I am, but I don't work here.

The extent of my legal advice in these parts is "get some legal advice".
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Unread 03-03-2011, 11:29 AM   #22 (permalink)
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Re: How to get rid of a business partner

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Michael I thought YOU were an Attorney?

TWIN

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Unread 03-03-2011, 11:33 AM   #23 (permalink)
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Re: How to get rid of a business partner

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http://www.marshallforum.com/members...4458-joker.bmp
"If you're good at something, never do it for free."
...and then there's that, not to mention that free legal advice is worth exactly what you pay for it.
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