Does my former partner still own 5% or is he just owed his investment?
My friend is suing me.
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If he asks to remain a 5% owner, it’s possible but not likely given the $1,900 refund—court could view his stake as tied to the $3,100 remaining rather than $5,000 (RUPA §701). If it’s just about $3,100, that’s manageable. Start gathering evidence: messages showing he wanted out and that you paid $1,900 in reliance on that. Once you’re served (or if you find the case online), if it’s about $3,100 you can likely work out a payment plan or deadline and resolve it without trial.
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My friend is suing me.
Lexi, Chatbot
I’m sorry to hear that. Can you tell me more about why your friend is suing you?
We bought a company together. He was going to own 5%, but after 2 weeks he wanted his money back and to not be part of the business.
Lexi, Chatbot
Have you been served with any legal documents?
Not yet.
Lexi, Chatbot
Is there anything else the lawyer should know before I connect you?
Yes.
Wendy
I’m an attorney—happy to provide information. Do you have a written agreement about ownership?
We have a written agreement but never signed or finalized it. After 2 weeks, he got back $1,900 and then wanted his remaining $3,100 back. I didn’t have it so he’s trying to serve me. Now the company is taking off and he’s acting like he still owns 5%.
Wendy
When you paid the $1,900, was there anything in writing that this was to buy out his interest, or that the rest would be paid later?
No, just a verbal agreement—he wanted out and would forfeit his equity. He said, “I no longer believe in this company, just give me my money back.”
Wendy
And he accepted the $1,900 partial payment?
Yes.
Wendy
What is he suing for (keeping ownership, the $3,100, or the $25,000 buyout)?
I couldn’t pay back the $3,100 so he blocked me and filed suit.
Wendy
What is the lawsuit asking for?
Haven’t been served yet—assuming ~$3,500. My concern is whether he still owns 5% even though we never signed papers and I started paying him back. Can I check what he’s suing for online?
Wendy
If he asks to remain a 5% owner, it’s possible but not likely given the $1,900 refund—court could view his stake as tied to the $3,100 remaining rather than $5,000 (RUPA §701). If it’s just about $3,100, that’s manageable. Start gathering evidence: messages showing he wanted out and that you paid $1,900 in reliance on that. Once you’re served (or if you find the case online), if it’s about $3,100 you can likely work out a payment plan or deadline and resolve it without trial.
Wendy
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