QUESTION
Can we retrieve $6500 back from a third party who helped sell our business?
Asked on Feb 18th, 2014 on Business Law - Florida
More details to this question:
A former business partner helped our business broker to sell our business in Florida. He advised us that the buyer was only willing to offer half the selling price. It has come to light that the buyer offered the full asking price and the former business partner offered to buy a 10% share. The former business partner advised us he had to take this action in order for us to get the full asking price. We are now $6500 worse off and could have received the full asking price of $65,000.
1 ANSWER
I'm not sure I understand exactly what went on here, but I gather that the buyer was prepared to offer full price, but your business partner told you that the buyer would only pay a reduced price, and he pocketed the additional money. If so, it appears that your former business partner breached his fiduciary duty to you, and (barring any problems which are not apparent from the face of your question) you can sue him to recover any damages you incurred due to his breach. You may be able to recover from the broker as well, if the broker knew about the full price offer and didn't inform you.
Given these circumstances (which, again, I may not fully understand) you may be able to, as an alternative to recovering $6,500, impose a constructive trust over some or all of your former business partner's interest in the new business, so that you would become the owner of all or part of that interest.
Answered on Feb 18th, 2014 at 2:56 PM