Trouble with a business partner? Post Falls Law can help!
*The following names of my clients have been changed to protect their privacy.
This case started in the early nineties. David and Goliath, two partners, drafted an airtight partnership agreement as they ventured into the business of apartment rentals. Idaho requires, unless otherwise provided for in a partnership agreement, unanimous consent of all partners to sell most or all of a partnership’s assets. However, according to the partnership agreement, Goliath could force David to consent to a sale of the apartments.
Unfortunately, after a short while, it became necessary for David and Goliath to bring in another partner: Saul. While the three partners amended the partnership agreement themselves to include Saul, they forgot to address the provision by which Goliath could force David to consent to a sale of the apartments.
Fifteen years went by without any issues. Then, finally, one day Goliath decided he wanted to sell the apartment complex. When Goliath discussed selling the apartments with David and Saul they declined. Goliath then told David, that Goliath could force the partnership to sell the apartments (remember the provision by which Goliath could force David to consent to a sale?). Goliath threatened David that if David did not sell the apartments he would sue David. When David talked to Saul about it, however, Saul told David that if David sold the apartments over Saul’s objection, he would sue David. Things were not looking up for David, either way he was going to be sued. So, he made the right choice by contacting Jonathon Frantz at Post Falls Law.
After pouring over the partnership agreement, emails, letters, and the law, Jonathon informed David that David could not sell the apartments over Saul’s objection. As a result, David told Goliath that the apartments would not be sold. In response, Goliath attempted to remove David as a partner for failing to comply with the partnership agreement. Jonathon answered by helping David file a lawsuit invalidating David’s removal and dictating that Saul’s consent was required before the apartments could be sold.
Goliath reacted by trying to bully David into submission. Goliath first hired an attorney firm from Boston who specialized in partnership disputes. However, because the Boston firm was so far away, Goliath also hired a “local” firm in Seattle. Still, the Seattle firm was not licensed in Idaho. So, Goliath then hired a large Boise firm. Despite the manpower Goliath wielded with his army of lawyers, they were no match for David’s attorney, Jonathon.
Goliath filed motion after motion in an attempt to raise the costs of litigation. Yet, David and Jonathon beat them all. Finally, nearly a year later, Jonathon helped David obtain a court order reinstating David and ordering that the apartment complex could not be sold without Saul’s consent. But that was not all. Jonathon also obtained a judgment for the full amount of his attorney fees against Goliath (more than $50,000). Even then, Goliath informed David that the judgment didn’t matter because David would never collect any money from Goliath.
With Jonathon’s help, less than a couple months later, David had collected every last penny he was entitled to. In the end, David was very happy he had hired Jonathon. David retained his partnership and got the money he spent on attorney fees back!
Post Falls Law can help you with your business partner cases.