DBA and Business Partner - Can I get my money back?

[17jacque]

Jurisdiction

Michigan

Hi - I have a DBA business with someone. I put up the money for the deposit for the land contract office building, office supplies/furniture and I also paid the monthly rent as well as the monthly bills (electric and gas) that went with it. I/we were unable to get financed at the end of the year land contract therefore, lost out on my deposit. My business partner didn't put up any money for it. We no longer work together as he has cut me out of any other business dealings. We still share the DBA name through the courts. Is there any way I could get him to pay me for some of the deposit and bills since it was for his business too??? Or am I just out that money? I have receipts for everything at this office building.

 

[Michael Wechsler]

This is a messy situation and sadly what happens often with informal partnerships. I don't know what a "DBA business" means. Is it an incorporated business? A partnership? Did you have any agreement what would happen if you put in capital contributions into the company such as the above? And if you're a member of the business in some capacity, i.e. a co-owner, how can your partner cut you out of the business? Given the amount of money at stake, I'm guessing it is well above small claims court. You should at least have a legal consultation with a business and partnerships attorney. There are just far too many variables to answer here although we can try to address specific questions with more details. Good luck.

 

[17jacque]

Our business is not an LLC. We just did a DBA. His name was on the land contract.

As far as him "cutting me out"....maybe I worded it wrong. I signed off as a responsible party for 2 of our business transactions/properties. But we still hold the DBA together. But I don't do any more contracts w him.

It's well over 10k I put up. I actually have no written contract as I've known him for 29 years. I trusted he'd reimburse me his portion...especially bc he said he'd get the land contract financed somehow or he'd pay me back if not. I have it in text he'd pay me back but....I saved it on my phone and now it's in a weird format. So don't know how to change the format.

I do agree....I may need to get a hold of local attorney. I just can't afford it bc my $ was wrapped up on this business. But I'll look into it! Thanks!

 

[Michael Wechsler]

Don't play with that phone! Speak to an attorney as soon as possible and you may need to have text message records sent to you from your phone company. Your attorney might be able to help you - but this must be done as soon as possible since many of them purge sms and text messages at around the 90 day mark.

I can fully appreciate the nature of doing business with friends of decades. You would never believe they would stab you in the back. But when it comes to money, the extent to which people can rationalize at times can be remarkable.

 

[adjusterjack]

It's well over 10k I put up

My guess is that you are going to end up kissing that money goodbye.

When you invest money in a business it had better be money that you can afford to lose because your risk is that the business fails and you lose your investment.