QUESTION
cheated in the name of business partnership will it be civil or criminal case
Asked on Feb 10th, 2014 on Business Law - Utah
More details to this question:
My friend came with proposal to open restuarant with 80/20 partnership. The 20percent was our share. Bank account in company name was opened but we were not added onto it with a promise we will be added at a later date. He said he had sub leased a building for the same( sent a copy of the lease) with a tentative start date of nov,2013. Later he kept postponing the opening and finally told us that he had been admitted in emergency,diagnosed with stroke so will not be able to start the restuarant so he will return the amount as soon as he is discharged. He claimed to be admitted in California. He kept avoiding and just sending text that he is arranging for money. We came to know thro' common friend whom he approached to borrow money that he blew up the amount paid by us $30,000 towards 20% share in Las Vegas and he was never hospitalized. He texted us saying he will pay $500/month but has not been available when we asked him to give us in writing. Is there any action we can take against him. Can we file a case-will it be civil or criminal. looking forward to your reply. Thanks
1 ANSWER
Criminal cases are brought by governments. The state government (through the local district attorney) may bring a criminal action against your friend if you bring these facts to the attention of the district attorney's office. Altbough restitution to victims is sometimes part of the sentence (imposed or plea bargained) which the criminal must perform, it is not always. For example, even if found guilty, your friend could be sentenced to serve jail time, which might serve justice but will not get you any money back.
Civil cases are brought by private individuals or entities, like you. You could sue your friend for his fraud. If you are successful, the Court will award a money judgment in your favor, and you will be able to collect on the judgment from your friend's assets and income, assuming he has any.
Criminal and civil cases are not mutually exclusive. You can sue your friend whether or not the state decides to pursue a criminal prosecution.
Answered on Feb 11th, 2014 at 4:33 PM