Legal Question in Legal Ethics in California

verbal agreement to buy company
Seven years ago, my husband was told he would receive ownership of the surveying portion of his company when the present owner retired (the surveying company is owned by the engineering company, all of which is owned by one man). The verbal agreement was based on a handshake. He had been receiving large bonuses every year for almost 25 years. 7 years ago, the owner began splitting the profits (50/50)with my husband except for that first of seven years when the owner took all the profits as my husband's ''buy-in'' of the business. Last year the owner said he was taking all the profits once again and would not be paying my husband for his extra office time as my husband's ''buy-in''. When my husband asked ''What had changed,'' the owner said ''Nothing''.The understanding continued until yesterday. Now the owner has made arrangements with another employee to do buy-in over the next 24 months. This buy-in is for the entire company - engineering and surveying. The owner said my husband will be the president of the surveying company, serve as one of 4 members of a board of directors, receive 75% of the profits for three years (under a work agreement) and then have to renegotiate will the new owner. Do we have any real legal recourse?

Asked on 11/16/01, 11:09 am

Ken Koury Kenneth P. Koury, Esq.

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Re: verbal agreement to buy company

the only thing you can really do is sue for breach of contract.

Answered on 11/16/01, 11:25 am

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