Legal Question in Legal Ethics in New York
transfer and sale of a franchise is being held up due to an unknown debt
I have recently decided to sell a franchise and discovered two weeks before the transfer is complete that there is a $30,000. lease settlement that is owed to the corporation from a previous store; I don't believe that I am responsible for this debt and I feel that an attorney needs to research and try to help me. The buyer is threatening me with a law suit if I refuse to transfer my business and pay this debt that I feel is not my responsibility. The attorney that had done all of the prep work, contracts, phone calls, etc.. was dismissed due to poor lack of performance, etc. by the firm. He assured me that the contracts that I signed were adequate; I have found out that they are not. I am not sure if there is a way of getting myself out of this contract due to his lack of ability as an attorney. He left out alot of things from my contract and now I am potentially going to be sued because of it. what should I do? should I seek the help of another lawyer?
2 Answers from Attorneys
Re: transfer and sale of a franchise is being held up due to an unknown debt
It sounds like the legal work was done by an associate. If so, you did not hire the associate, you retained the law firm and they should make it right.
Suggest you get a second opinion. I would have to read the current contract and the previous one (when you bought the business), etc., before advising you.
I practice in NYC & Long Island.
Re: transfer and sale of a franchise is being held up due to an unknown debt
It sounds like it would take a lawyer to review your current contract to sell your business and the prior contract when you purchased it from an owner who initially incurred the $30K debt. Without reviewing these contracts, along with talking to you and reviewing other relevant material, it is simply not possible to offer anything of substance.
-- Kenneth J. Ashman; www.AshmanLawOffices.com
This communication is intended for general informational purposes only and is not intended to create an attorney-client relationship, which, under the policies of Ashman Law Offices, LLC, can only be created by execution of a formal retention agreement.
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