Recovered Property in Business Dissolution

BAD BUSINESS PARTNER PAYS BIG TIME!

Representing Kevin R. Hodge Licensed Paralegal representing the Plaintiff

Background:

This was a case of a business partnership where the Plaintiff decided to terminate the partnership with the Defendant. The Plaintiff served the Defendant with a notice of dissolution with an offer to divide the business 50/50 including the merchandise that was in the Defendant’s possession. The Defendant was uncooperative and the Plaintiff filed a claim.

Action:

The Plaintiff retained Mississauga Paralegal Services to represent their matter in Small Claim Court. Mississauga Paralegal Services drafted and filed Plaintiffs Claim against the Defendant for 50% of the business funds and %50 of the merchandise.The Plaintiff claimed: Special damages; General damages; Interest Cost of action.

Settlement Conference:

Several issues were discussed regarding the merchandise, debts of the business as well as the profits of the business. This conference was settled in the Plaintiffs favor with the defendant agreeing to pay the Plaintiff its amount claimed including legal costs, business profits and money to pay off remaining debt. The Plaintiff also received all merchandise. That had been in the Defendants possession.

 Outcome of Settlement Conference:

Plaintiff awarded amount claimed,all of the merchandise and costs against Defendant.

ANOTHER VICTORY!

The Plaintiff presented a strong case having attempted to dissolve the business in an equitable manner. However, due to the Defendant’s lack of cooperation, the case proceeded to an assessment hearing. During this hearing, it was brought to the attention of the Court that the Defendant had failed to respond to the Plaintiff and was holding all of the business merchandise. The Court ruled in the Plaintiff’s favor awarding the amount claimed in damages. This award in damages proved to be highly effective when proceeding to a settlement conference upon the Defendant filing a motion to be heard. The outcome had already been determined in the absence of the Defense and therefore to avoid having to pay , the Defendant became open to a solution in alternative to proceeding to trial. The end result of this case exceeded the Plaintiff’s original claim. The Plaintiff came out on top with the amount claimed , all of the merchandise and the costs of the action.

Client Reaction.
I sued my business partner for lack of work and won the amount claimed and all of the merchandise.

Disclaimer:past results are not necessarily indicative of future results and that the amount recovered and other litigation outcomes will vary according to the facts in individual cases.

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