Partnership Dispute. Lawsuit Pending. Have I missed anything?

[Unarmed Gunman]

• I'm the only one who has access to the domain

.....

The company's website produces 95% of our annual sales. I still answer the sales emails that come in to try and produce sales. The domain name expires in a few weeks. They want the website.

So take the site down, and when they feel the pain from losing 95% of their sales maybe they'll do the right thing.

As I left the company I felt like I needed some leverage for my position so I went to our shop and took a nice chunk of equipment from the company amongst much protest. The used equipment is worth about $5k.

Oh. Well that will probably backfire on you in a big way. Good luck bros.

 

[Netphase]

 

[SethH]

There's some missing information here. When you say you 'left', do you mean you sold or otherwise turned over your 25% of the company, or did you just angrily throw up your hands and say 'fuck this I'm out'? Also, when you put in $25k was it written as a loan to the company with a scheduled repayment plan, or was it the purchase of equity? If it's the latter you have absolutely no right to waltz in and repossess company property as a minority owner like that. You aren't a creditor so you can't just decide to liquidate. Maybe I'm missing something and I'm far from a legal expert, but from what I can gather the one who's in the wrong here is you.

 

[wayn3]

You French fried when you should have pizza'd

 

[conjamuk]

Mixing family + biz always ends up badly.

 

[microphone head]

You seem to be in utter turmoil about a relatively small amount of money.

Seriously don't worry about shit like that - all the time you're spending trying to recover that small amount you're not doing what you should be doing best and that is increasing your profit.

Just count up the hours it's taken so far. Is it financially even going break even in the end? Will it ruin family relations somehow? Possible I guess, I don't know but just think about it. It's a pish amount of money - be done with it and move on.

At it's very base level: It was a very small price to pay for the information you now know about the people involved.

 

[miketpowell]

Why do you think they owe you money? If you invested in the business and they ran it badly and it didn't profit you don't get to sue them for the money they should have paid you.

Have they been taking profit out of the company or something? This sounds like you invested in a venture that hasn't been profitable. If that's the case you lose out on your investment - you don't get to sue them simply because they didn't manage to turn a profit for you.

 

[Second]

You French fried when you should have pizza'd

Lol lol lol thanks for the laugh.

 

[thehobbster]

Sounds like you made an "investment" versus a "partnership," despite the legal jargon. You made a bad investment. It happens. You aren't going to get your extra 20k out of them if they don't have it. AND you'll have to ruin them to get it. And you're talking about your family that you love and care enough for that you were willing to pony up and help them launch a business. Don't fuck them over. Tensions are going to get high and people are going to say shit they regret, but remember where you all started.

What I would do is attempt to give them this option in a friendly fashion:

Liquidate the entire company, and all proceeds go to you, AND they go get regular ass jobs and pay you back the balance within 24 months (monthly payments or something).

It just seems like there is a way to settle this problem without ruining your relationship with some of the most important people in your life.

Then again though, if they want to herp and derp instead of taking responsibility and making that money back, then do what you have to do get your money, based on principal.

But for fuck's sake. Don't let that domain expire, or you lose almost all leverage you really have.

 

[gbmack]

lol u r propr fked m8

if ya wan my advic i sugest u shag ya fam xtra hard, each and evry 1 of em. then vid tap dat shite and sen it to me 4 me to jak off tew

trus me lad, ive dun dis b4

 

[elgordo]

Didn't read all the replies but I've done a couple of partnership ventures before.

First and foremost: did you at least do a 1-2 page term sheet?

You mention certain things were "understood" ... but how is that possible if its not documented and signed?

Since it sounds like you didn't do even basic things to protect yourself, you'll need to leverage the domain (which is under your name) to get what is owed.

Be careful about leveraging the domain. You SHOULD renew the domain, but you should be very careful about leveraging it for a payout. Why? Because it could be perceived as domain squatting in court, and you could get buried.

 

[galacon]

So you keep using the generic term "Partner" and then use the term "Family" multiple times like they are mutually exclusive. I don't understand- is your "Partner" also "Family?

And you further state your agreements are based on spurious and ephemeral shit like Facebook posts etc., is that right? And that you've converted company assets to hostage collateral and seized the company domain without due process?

You front as a "Businessman", and claim to have a "Business". Did you think you were special? That you could be the one-in-a-million who would have a good experience with NO business plan...NO clear, written agreement...NO iron-clad exit strategy? Especially with FAMILY? And you're a "Businessman"?

Mate, if I was you, I would BEG a mod, no, I would offer to suck Jon off on the dance floor at the next Aff Summit to remove this thread and ban me forthwith for being dumb enough to post this here.

I don't care how long you've been a member, or what you've done, this is fucking pathetic. Good luck, kiddo.

lolbusinesslol.

 

[Hurr-Durr]

I got nothing to add except:

Top 5 Reasons Family and Business Do Not Mix - Brad J Martin - Modern Business Life | Modern Business Life - The Blog of Author and Analyst Bradley J. Martin

Family feuds over business, money - Boston.com

Why Family and Business Don

Relationship Q&A: Mixing Family and Business

Why family and business don

'Blood and Business Don't Mix'

Why you shouldn't mix business with family

Death of Family Business

Freakonomics » Why Family and Business Don

 

[c4yrslf12]

Offer to buyout instead, and acquire his 75%, of which you pay your buyout fee after you've recouped.

A.) Family member gets something back and doesn't feel like they're out forever
B.) You control the income producing asset.

Give now, take later.

 

[contract]

OP,

You do not need a lawyer...

The only thing you need to figure out is if it's going to be:

Judge Judy or Judge Joe Brown?

 

[cheshire]

Anyone in my family can show up right now , ill cut them a check for 25k and give them a hug.

Dont be a fucking faggot.

Hey cuz, how you doing?

 

[BluAffiliate]

I would try to get the company back on it's feet, reconcile with your family, then when the company has enough cash I would solemnly cash out, wishing then luck and move on.

 

[JonesersRX7]

Didn't read all the replies but...

Things you should NOT have done:

- Take company assets hindering them from continuing daily operations
- Impede their ability to operate in any way
- Believe you have some "Napkin partnership" via facebook chat
- Not securitize your capital contribution by means of a Note via a personal guarantee OR against company assets.. Land being best option here.
- Not setup an operating agreement or proceed in any means without any legal/binding agreements because "they were taking too long"

Things you should do:

- Not post this shit here
- Consult with legal on best course of action to recoup your $25K. Would seek to get repayment of capital contribution over time
- Determine if $25K is really that big of a deal for the amount of time, energy and outcome this will have with your family
- Read more business books and keep in mind this will be a $25K investment on how NOT to do business.
- Learn to analyze investments better. (How much did you believe your $25K would make you?) Should be getting at least 40-50% return buying traffic right?


Better fortunes next time man.

 

[thehobbster]

B.) You control the income producing asset.

Therein lies the entire problem. There is no income producing asset. That's why he's owed money and they can't come up with any.

This is like turning an empty piggy bank over and shaking it until magically a quarter pops out. Nothing is going to pop out, ever. You can sue that piggy bank until it starts to fly, it's still empty. Maybe you can have it's measley 9-5 paychecks garnished for the rest of it's life, IF it decides to get a job. But it's more likely to go on unemployment and spend more of your money via taxes.

 

[rileypool]

The family part was they initially started the company. I took over 2 months after they got it going and was the Managing Partner. I controlled EVERYTHING and largely quit IM to get this company going. The biggest role family had was the 75% partner (my cousin) who didn't do anythign for the company except take $10-$15k per year as he saw fit. This is the part that upset me most. He had a full time job other than the company. The other role family had is one of the employees was family (my other cousin, previous cousin's brother).

When I heard they were doing some scandalous shit behind my back, I took the assets I paid for out of my pocket.

Couldn't you just keep the website and offer to hand it over once they repay you the full amount you are owed.. or am I missing something here?

That was the plan. Maybe I forgot to mention it in original post.

It's always a good idea to post public threads about pending legal action before even talking to an attorney. Talk it out bro, journal your feels, the wickedfire legal department is closed for the weekend but will resume monday morning.

Everything I've discussed is public information. There is non-public information that I haven't disclosed incase this does go to court. Someone had to say it though. I understand.

Walk away. Is it really worth your time chasing people with no money for a few grand. In the time it will take and the legal costs, you could have just made some more money on your own.

The website pulls in too much money every year to walk away. Otherwise, I would have done so already. I would prefer to keep the website. Start a new company and 301 it to the new website.

Taking a piece of equipment was not right. They could hit you with felony theft, thats not a civil matter.
It sounds like they have some assets. I would stop generating sales for them. It wouldn't be worth it suing them for 10k, the quality of lawyer that you would get in that lawsuit wouldn't do you much good. Unless you want to spend more than 10k to just to spite them.
Of course you could always hope for a default judgement and seize all their assets.
Why do you think you are owed anything? Agreements don't matter much, specially ones done verbally or on facebook, it'll be more based on facts / efforts.

Felony theft from my company? I still am Managing Partner. The company does have some assets left.

I do realize using an attorney isn't going to be worth my time or the attorneys, but I mainly need it to discuss my options.

I believe I'm owed my money back because I poured it into the company I was working for. Again, paperwork is lacking and it needs to be better. There were many email discussions between myself and my other partner about what I'm owed and how it's to be paid back to me.

Sorry, OP. I hope you've exhausted all other means. If they're broke, how are you going to get money out of them anyway? Also, if you "invested" 25k and only got a 5k return, that happens sometimes. Did they make you leave?

The initial 10k was goign to be a payment from the new manager's (my uncle) 401k. The rest of my money was to paid from the company's profit's next year.

I've been telling them that I couldn't work the 60-80 hour weeks after my son was born and that I would be leaving the company as soon as I took care of my customers. This was known for a good 6 months. Everybody around the company was aware. We worked out an agreement on how I would be paid back my money.

If you only own 25% and they are "completely broke", shouldn't you just be out of luck or at their mercy on what they want to do as they own 75%?

I'd probably give them the option to liquidate the company, and then you would get 25% of the assets or 25% of the money from the sale of assets.

Or just wait until they start generating income and continue to own 25%.
If you don't want to help them or handle anything, hand it over to them under the condition that they sign something saying you own 25% of the company.

I pretty much am. That's why I'm trying ot find out what options I may ahve that I haven't considered.

So take the site down, and when they feel the pain from losing 95% of their sales maybe they'll do the right thing.

I've switched the number back to mine (it's been on there for the past 2 years and it hasn't done anything.

There's some missing information here. When you say you 'left', do you mean you sold or otherwise turned over your 25% of the company, or did you just angrily throw up your hands and say 'fuck this I'm out'? Also, when you put in $25k was it written as a loan to the company with a scheduled repayment plan, or was it the purchase of equity? If it's the latter you have absolutely no right to waltz in and repossess company property as a minority owner like that. You aren't a creditor so you can't just decide to liquidate. Maybe I'm missing something and I'm far from a legal expert, but from what I can gather the one who's in the wrong here is you.

I told them dating back from the Spring/Early Summer htat I would be leaving the company. The money was a loan to the company to purchase the equipment I took back. I purchased much more than I took. I already had the equity share.

You seem to be in utter turmoil about a relatively small amount of money.
Seriously don't worry about shit like that - all the time you're spending trying to recover that small amount you're not doing what you should be doing best and that is increasing your profit.

Just count up the hours it's taken so far. Is it financially even going break even in the end? Will it ruin family relations somehow? Possible I guess, I don't know but just think about it. It's a pish amount of money - be done with it and move on.

At it's very base level: It was a very small price to pay for the information you now know about the people involved.

Not utter turmoil, but it's a fair sum of change and worth looking to what options are available to me. As of now I have very little time invested into it seeing what my options are.