Legal Question in Business Law in New York

Good evening, I filed a small claim against my ex friend/business partner. I'm not sure if I need an attorney, but I�m interested in a consultation.

-The defendant and I started a small swim wear business in May 08'. My responsibilities included but were not limited to designing the swim suits, the logo, the website; I produced photo shoots, wrote contracts, handled the budget, I created the brand. The defendant�s responsibilities were marketing and public relations.

-Between February 17th and 21st of 2010 I was in the hospital to have my first child. I called defendant and left a message for her to come visit me and the new baby. While I was still recovering on the 19th I received a notification on my Blackberry stating I need to update my business email accounts. I called the defendant and asked if she changed the passwords and she stated "yes� I asked why? And she said we'll talk after I get out of the hospital. I told her we could talk now! And she said she was busy and had to hang up and she hung up the phone.

-About two weeks prior I emailed her asking if she could sign and notarize a letter for my fianc�e�s paternity leave. The letter said I was returning back to work the end of March 2010. She refused to sign it, which raised my eyebrow? I also found an email after I was able to get the email account back. In the email she asked the web designer I worked with to call her so they could meet and to keep it confidential.

I helped finance the business. I have our operating agreement, paid receipts and evidence of me lending her swim wear I designed which she never returned. Plus evidence she changed the registrant on domain account. The business is still active and she runs it like I never existed.

I was scammed out of a $5,000 investment and would like to recover the cost.

Do I have a case that is likely to win?


Asked on 1/06/11, 7:59 pm

1 Answer from Attorneys
Nhu Vu Seravia

Hi, it sounds like you could have a case. The first place you should look will be to your operating agreement. Generally speaking, designs are owned by the party who creates them, unless the designer gives ownership of the design to the company or to another party. So without agreements in place, your swimsuit designs are yours. It doesn't sound like you've handed off ownership to the company.

Even if you did give ownership of your designs to the company, the next issue you should also think about is how ownership is split according to the operating agreement. It sounds like you have an LLC, and LLCs may allow for varying ownership interests disproportionate to the monetary contributions. In other words, let's say you both in $5,000 each -- this doesn't necessarily mean that ownership will be split 50-50.

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Answered on 1/19/11, 6:49 pm


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