Can ex-business partners sue you if you have a dissolution of partnership and start a new company with a similar idea?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can ex-business partners sue you if you have a dissolution of partnership and start a new company with a similar idea?

We (4 of the partners and I) decided to break away from the other 2 partners and form a new company under a new name. The other 2 partners had performance issues. We never signed a partnership agreement, nor did we ever fully discuss any of split of equity. The new company will have a similar concept (as generic as opening a coffee shop) but under a different name and filing.

Asked on January 10, 2012 under Business Law, New York

Answers:

MARK ROSENBERG / Law Offices of Mark L. Rosenberg

Answered 9 years ago | Contributor

They may be able to claim that you had oral non-compete arrangements or that you used their proprietary information or customer lists improperly in your new business.  If there were any ideas that they contributed to the company that you are now using, they could certainly file suit. You would be best advised to try to work something out with them to avoid a messy and expensive lawsuit.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption