Ohio | Business Law
Legal Question
Family business deception
With a verbal agreement that my brother & I would be partners, my parents decided to sell their retail property & business to us at 1/2 its value. My brother & I formed a Limited Partnership &, because he lives close to our parents & the business, we agreed that he'd take care of the required paperwork & keep me informed.
Everything was going well. Prior to the sale, my brother had already taken over management of the store & I was encouraged to purchase a truck, equipment, merchandise, & to send some cash. I did all of this.
Now I find out, that on May 3rd, my brother cancelled our Limited Partnership & formed an LLC by the SAME NAME, listing only himself as an authorized representative. A couple weeks later, by using the same name as our partnership, my parents were lead to believe that they were selling their business to their two children, when in fact they were deceived into selling it to just him. They would not have sold, had they known the truth.
Although he says that I’ll be repaid for the money I have spent, I am out of the business. My parent’s wishes have been broken & they are out of the additional $400,000 that they could have received.
Do my parents or I have any recourse?
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