Legal Question in Business Law in Texas

Fight it, of pay up??

A sole proprietorship owner receives funds from an individual in the amount of 20K for 10% ownership in her business, no written contract just a check with a note at the bottom stating the 10% purchase. 90% owner sells company for 75k and offers $7500 back to the investor as payment for his 10%. Investor (by way of a lawyer) asks for an additional 5K and threatens to sue the newly formed LLC version of the original company and the company that purchased the sole proprietorship for up to 30K+ if the $12500 isn�t paid within 120 days. Get a lawyer and fight it? Or just pay the $12500????


Asked on 6/06/09, 11:59 am

2 Answers from Attorneys
Charles Williamson Charles J. Williamson, Attorney At Law

Re: Fight it, of pay up??

If what you have given here in the desciption of the situation is all that there is to it, then the question becomes can you fight it and be successful for less than $12500? Again, if the only facts pertinent to the matter are what you have given here, then I would suggest getting a lawyer and filing it because it should not cost more than the $12500 figure - indeed, it should cost much less than that amount. So, don't let someone take you for a ride when they're just trying to rip you off. Hope this helps a little with your decision.

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Answered on 6/06/09, 12:12 pm
Edgardo Baez The Baez Law Firm, P.C.

Re: Fight it, of pay up??

As I see it, investors bear the risk of their investments. If you did not promise the investor 100% return on his investment, you are not be liable for the $12,500. On the other hand, you should do what's on your heart. By that I mean, if you think that you should pay him, because the investor is a friend or a family member, then, do not break a relationship solely because of money, its not worth it.

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Answered on 6/08/09, 8:32 am


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