Can I sue a business owner if he refuses to advise me of any business related matter per operating agreement?
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Can I sue a business owner if he refuses to advise me of any business related matter per operating agreement?
Also, he uses the business checking account as his own personal checking
account. And he has not provided the business tax return.
Asked on June 18, 2018 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If he is violating the terms of an operating agreement, you could sue him for "breach of contract": an operating agreement is a contract. If you and he are both owners (e.g. members of an LLC), you may also be able to sue him for breach of fiduciary duty if he is benefiting himself at your expense: business owners owe each other a duty of loyalty (the fiduciary duty), which duty can be enforced in court via a lawsuit.
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