Legal Question in Business Law in California

October 1st, 2008 I enteredinto a Auto Insurance Brokerage verbal limited partnership with a small corporation, at the time the entity was moving in red numbers and according to the owner( president) near trowing the towel, once we found out how much capital we need it to produce to stay up in business we agree that I was gonna open a Office out of my own money without any monetary assistance from them, I had to stablish the operation by myself, get it up and running and manage it by myself in regards operation expenses, marketing, point of sale and partial customer service, having in return 100% of all upfront "broker fee" produce at my office and corporate keeping all back end residual income produce by all policies sold tru my office and all future offices that I oppened (if any), licensing and customer service for the after sale was their liability and compromise to handle the insurance policy processing (the bridge between office and actual insurance company, the agreement was that this office and any other opened by me were gonna be "own" by me only and/or any other opened in the future it would be handle under the same partnership agreement. Early in 2009, due to couple of reason such as "corporate" had to minimaze their operation expenses and the high volume of business my office was generating we agreed that it was convinient that "corporate" move into my office to assist me a bit more, still I carry operation expenses and the presidents (my partner's home rental fees) and "corporate" will manage thei'r good will (pre-stablished") business from my office, while their cooperate with daily operations, by summer time "corporate advise me that it was "time" to midified "upfront profits wanting to split broker fees to a 50/50, with production at peek and no time to grasp it had to say "yes" lets move on, with the promise from corporate to "soon" put our deal on INK. Early November my Landlord advise me to "watch out", corporate had taken a office lease few blocks from here, I'd inquiry my partner in that respect having as a answer: "don't worry Israel, I got that property to open a Used car dealership, wekks later corporate pull all their belongins out from my office, refusing to consolidate our partmnershio nad currantly they are conducting business Utilizing my marketing strategies and sitting as "fat cats while my operation is DONE!

Couple of weeks ago I entered into negotiations with another brokerage firm to re-open , this time I was managing the agreement via writing draft, back and forward, trying to get it done at a much secure manner for all people involved, my former partner got a hold of this company and gave them slandering, fearful and false information in regards my way to do business, this people retracted right after their contacts and I�m in a worst position day by day, every person involved has their own side of this history, this one is mine and I�m sure there�s nothing more than the truth in these lines.

At this point I feel abuse on every sense; I�m on a financial and psychological hardship while the other party is not, my questions is, being sure that I�d never committed a single �fatal business nor ethical mistake during our partnership�, due I have any protection rights do?.


Asked on 1/21/10, 11:05 am

2 Answers from Attorneys

Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

The facts of your situation are obviously complex, but it sounds like you might have a good breach of contract and/or trade secret case. You should sit down with an attorney right away so that they can get all of the facts and determine what claims, if any, you have and what it will take to pursue them.

Jon Reich

NOTICE: No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you

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Answered on 1/26/10, 11:28 am
Ronnie Gipson Higa & Gipson, LLP

The facts presented indicate that you may have some significant claims. I recommend that you contact a business attorney without delay to explore those claims.

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Answered on 1/26/10, 8:38 pm


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