Legal Question in Business Law in New York

Business Partnership, LLC

50% business partners gone bad. 1 partner has taken assests of the business opened a new business and is renting LLC property out under another name, shut number 2 partner from customers, money banking. They rent mobil signs, can the signs out for rent be removed from their location by number two partner? they both guaranteed a loan as 50% partners. The LLC is being disolved


Asked on 2/15/08, 6:58 am

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: Business Partnership, LLC

Each of these partners need to take a close look at their partnership agreement. It should contain the answer to most of these questions (including the one about the signage).

If there is no partnership agreement, Partner2 has default rights under NY state law, which include the right to demand and receive an independent accounting of the business. If Partner1 is cheating, Partner2 may have causes of action to sue Partner1 under several theories, some of which might be eligible for punitive damages.

Partner2 needs to hire a lawyer. Partner2 should do this sooner rather than later, since rights dissipate with time.

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Answered on 2/15/08, 7:46 am


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