Legal Question in Business Law in Colorado

embezzlement from LLP

I am 50% partner in a LLP

comprised of two partners. We own

and manage an apartment building.

My partner paid himself

management fees from the

Partnership bank account without

my agreement for the past 1-1/2

years. We never discussed this. He

admits he did not tell me because he

thought I might not agree. I have

asked him to return the money. He

refuses. Is this embezzlement? What

are my recourses? Our Partnership

Agreement provides for mediation in

the event of a deadlock or can I

proceed directly to Small Claims

Court? All advice appreciated. Thank

you.


Asked on 3/24/07, 10:22 am

1 Answer from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: embezzlement from LLP

Morning,

Sorry to hear about this issue. You need to follow the agreement provisions to the letter. Besides, proceeding to small claims would only be an issue on the fee. You can imagine the problems for the LLP if you sue the partner but do not resolve the underlying issue of trust and communication.

You really must talk to an attorney about this. I would advise review of the agreement, mediation and a revision of the terms (such as forced buyout in event of agreement breach or reduction of equity, among other ideas.

Feel free to email if you have questions. Good luck.

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Answered on 3/24/07, 10:39 am


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