California | Business Law
Legal Question
Breach of operating agreement
In 2005 I entered into a verbal agreement with a coworker to become partners in a business venture. Subsequent to our discussions we entered into a purchase agreement for a bulk sale on two businesses. Our intention both capital and operational was to contribute 50% each capital as well as 100% operational once we closed escrow or began operating the businesses.Since then I terminated him in the LLC due to the lack of his contribution both financially as well as operationally. He is suing me for Fraud as well as wrongfully terminating him in the LLC. We are in the deposition stage and going for arbitration. The question I have is after singlely running the enterprise and because
he has had to participation since sept., I have a major loss and unable to close escrow. The seller has cancelled the escrow and been informed by his legal counsel to hold off any further transactions on this property. If I dissolved the LLC or filed bankruptcy how might this affect the pending litigation with my ex partnner , and would the seller be compromised to sell to me without the expartner even thouhg his signature is on the purchase agreement. Thank you.
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