What do I do if my partner sets up the same business with another person?
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What do I do if my partner sets up the same business with another person?
A 1/3 Partner went to a customer and provided detail of our business to start their own and refuses to pay the loans that that partner took out of our business. They also took possession of company assets. Is this criminal or due I need to file a lawsuit? Also, customer is from another state.
Asked on February 16, 2012 under Business Law, Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your partner set up a business in direct competition with the one you have with him or her and took possession of company assets for this business, your partner violated a fiduciary duty to you.
As such, I recommend that you consult with a business attorney as to what legal recourse that you might have consisting of, but not limited to an injunction as well as a lawsuit for actual damages. The conduct is more civil in nature as opposed to a criminal matter in my opinion.
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