Legal Question in Credit and Debt Law in Florida

Hello there, I have a friend A who helped setup one of his supposedly friend B in a collection agency. The verbal agreement was that friend A was to provide the equipment and space to operate the business. They were suppose to split the profits 50ty 50ty then pay to the city their required fees. Also friend B was supposed to train friend A how to do the collections and other aspects of the business. After a month or so friend "B" collected about $300.00 and then everthing slowed down. I asked friend A if he really trusted friend B. f Awhile later friend A found out that friend be had opened another account in his name without friend a knowing about the new account. When confronted friend B said he didn't have his bank account number with him and so he had to opened new account. After a few verbal remarks friend B finally admitted to friend a that he had funneled some of the collected funds into the new account also that his wife had put some funds in the same account. Friend "B's" reasoning was that he was doing all work and deserve all the money. Friend A had asked to participate in the collection but friend B declined to show friend A how to do it, saying at this time it was easier for him to do all the collecting. Also friend B had been neglecting to pay the city their portion of the collected funds. (I think approx. $1800.000 total.)
Friend A. has invested approximate 4,500 dollars of which friend B has not repaid a penny. At this point what should my friend do to comply legally and recoupe the funds from friend B?

Asked on 7/15/10, 12:45 pm

Lucreita Becude Lucreita D. Becude, P.A.

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File a small claims action based on Breach of Oral Contract.

Answered on 7/19/10, 7:58 am

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