Legal Question in Business Law in California

Re: Joint Tenancy in Business

In a tenancy in common (�TIC�) one tenant in common�s ability to force a sale (partition) is usually governed by the TIC agreement. If there is no written agreement, common law rules may apply to govern how one tenant in common can sale the business and the tenants in common would share in the proceeds on a prorata basis. You should have an attorney review the agreement and advise on how to best proceed.

Grant Puleo, Esq.

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Re: Joint Tenancy in Business

Ownership of a business by two or more persons as tenants in common is a trifle unusual, but certainly possible (Civil Code sections 685 and 686). Tenancies in common are more usual in real property than in personal property. You should be relatively certain that the ownership is indeed as tenants in common, and not as partners or as co-shareholders.

Next, be cognizant that the law of tenancies in common is most often applied and interpreted in real property contexts, but this does not preclude it applicability to personal property. Some of the principles and procedural nitty-gritty will be a bit different when personal property is involved, however.

Note, for example, that Code of Civil Procedure Title 10.5 is entitled "Partition of Real and Personal Property." This is probably the starting point for you.

The tenancy in common can be partitioned under Title 10.5 unless the sister has a defense, and in a partition these are few and far between, waiver being the chief one. The fact that the sister is out of state should not be a problem; the property is here and that should give the California courts subject-matter jurisdiction. It will be necessary to acquire personal jurisdiction by proper service of process on the sister.

I don't know where 95032 is, but if you are near Marin or Sonoma Counties, or the Bay Area, this kind of case is within my area of specialization and interest, and I'd be happy to discuss it with you at no charge.

Re: Joint Tenancy in Business

A lawsuit for dissolution and/or partition can be filed, depending on the type of business. The sister would either have to buy the others out, or have the business dissolved. Alternatively, depending on the business, your mother and brother may be able to sell their interests to a third party (this would depend on whether there was a written agreement between on the business owners).

Let us know if you have any further questions.

Re: Joint Tenancy in Business

If anyone wants to sell out their interest, or the entire business, they can force that through legal action if necessary, consistent with the terms of any written agreement if there is one. No one can be forced to buy. They should consult experienced counsel to work out the details. Contact me if interested.