Legal Question in Business Law in California

I signed a contract to exchange my design services for 9% of a $500,000 company (a brand new kit car company with $350,000 invested in R&D). 3 months later I found on the Internet that this supposed new car was simply purchased for about $35,000 from a relatively unknown kitcar company on the other side of the country.

I am out about $12000 in time at my hourly rate. Myself and an investor (he lost about $16000 cash) are about to hire an attorney and sue the guy for contract fraud.

I've checked into the guy who conned us and I'm pretty sure he has at least one house in his name. We have plenty of e-mails and documents as proof his intentional misinformation.

I am wondering if it will be worth more of my time and $2500 up front in attorneys fees to go after him?


Asked on 3/23/10, 11:06 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

That's a decision you have to make, no one else. If there is a reasonable chance of winning and being able to actually recovery any money from the guy, go for it, as long as the fees are an acceptable risk to you. If serious about getting counsel on this, feel free to contact me to discuss your actual options, risks and rewards.

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Answered on 3/29/10, 1:07 pm


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