Legal Question in Business Law in California

I founded a company 10 years ago, invested $700,000 (my life savings) and later brought in an investor/ partner (who I trusted implicitly). He (a lawyer) and his legal team acted as if they were counseling me legally and tricked me (lied and misled) to sign documents that basically gave them total rights to the entire company (including books I wrote, 250 products I designed, all trademarks and IP and $4 million worth of inventory. They didn't pay the severance they had agreed to in writing. They violated several of the American Bar Association's Rules of Conduct. They left me with nothing but a 12 mo. non-compete that scared off other investors who wanted to start a new business with me. I lost everything, 10 years worth of creative work, my life savings, my income, my home and my car. I had to go live with a friend and my boys are temporarily with their dad until I can afford a home again. I have no money to sue them plus it would be stupid to sue lawyers. I have been told that filing a legal malpractice grievance might scare their insurance carrier into paying me a settlement. Is that true? If so, what approach would be most effective? Lorle


Asked on 1/23/11, 5:23 pm

5 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Insurance companies don't scare easily. Since you don't have the money for a lawyer, and you probably waited too long to sue, odds are you're out of luck. Too bad you didn't hire a lawyer to advise you before writing that $700,000 check.

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Answered on 1/27/11, 2:11 pm
Terry A. Nelson Nelson & Lawless

Scare an insurance company? Yeah, right. Nice try.

You could have grounds for a breach of agreement or fraud lawsuit, if you are timely, i.e. within the statute of limitations. 3 years for fraud. 4 years for breach of written contract. 2 years for breach of oral contract. 1 year for legal malpractice. Are you within those time limits? Even if so, then did you waive any and all claims as part of a written severance agreement - go read it. If so, then all you are left with is a breach claim on the severance agreement payments. If so, the inquiry will be whether it is worth bringing such claim, it is timely.

You must prove any claim/lawsuit you bring with actual admissible evidence of liability and damages. If you meet these requirements, feel free to contact me to discuss your rights and remedies.

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Answered on 1/27/11, 4:17 pm
Anthony Roach Law Office of Anthony A. Roach

Send me a private e-mail. I know an attorney in La Jolla who would at least speak to you for a consultation. He sues attorneys all the time for malpractice and he is very deadly at it. He has also handled issues involving business dealings with lawyers, including corporate schemes such as the one you mentioned.

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Answered on 1/27/11, 7:01 pm
Daniel Bakondi The Law Office of Daniel Bakondi

I have worked on numerous similar matters, including multi-million dollar shareholder claims. I see this as possibly a multi-million dollar claim equal to a large share of the company. Please send me an email so we may speak to discuss your rights and options, and similar cases in which I have helped other shareholders who have been "taken" by company controllers.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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Answered on 1/27/11, 8:59 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You have four lawyer responses already. If I were you, I'd select Mr. Roach's as the best.

Malpractice insurers are pretty stingy, but as to "scaring" them? I'd say based on malpractice cases I've handled, they know when to hold 'em and when to fold 'em.

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Answered on 1/27/11, 9:36 pm


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