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We helped a friend start a rest bar he asked us to manage it but couldn't afford to pay us til it made money or he sold it He is selling it and trying to back out of paying us How do we recover?
Wiki User
∙ 14y ago
You'd have to sue him. The lawsuit would be on the theory of "quasi-contract" and would be for recovery of the reasonable value of your services. (Unless you have a written contract, then it would be a straight contract suit).
However, only after you have won the case and the judgment is docketed does it become a lien on his property. Winning might take a year or more.
There might be preliminary court proceedings available which would prevent him from disposing of assets, or of the proceeds of the sale of those assets. You need to consult a lawyer in the state where all this is happening.
If he is not going to clear much profit from the sale, because he already owes creditors, even after you have won the lawsuit and the judgment is on the books, you are in no better position than any other unsecured creditor.
Its a shame that he is able to get away with abusing your trust and friendship, but those do not mix well with business.
Wiki User
∙ 14y ago
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