Posted by Bob on August 19, 2008 at 04:10:08:
I did the search on CREOnline for Partition Action and read all of the other posts. Very helpful Thanks
partnership gone bad - Posted by bob
Posted by bob on August 18, 2008 at 08:13:17:
I own two different waterfront lots with a partner.
We have one loan of both lots and the lots are of equal value
I want to build on a one of the lots.
To do this I would want to split the lots, and he does not want to do this.
He wants me to buy one of the lots from him and we both own the other.
Is there anyway I force him to split the lots?
They are located in Georgia.
Partnerships suck - Posted by John Merchant
Posted by John Merchant on August 18, 2008 at 09:19:18:
Great example of why lawyers are pretty much in agreement (atypical of lawyers, right?) that Ps are the very worst form of group ownership or endeavor and Ps like your are terrific generators of lawyers’ fees.
Normally the only legal “force” available to feuding Ps is a/the Partition Action (which I liken to Solomon’s baby case*) where one or more Ps file a lawsuit asking the court to order an equitable split or division of the property.
Interestingly the law books have very few Partition Action final judgments, certainly in proportion to the number of lousy, unwritten and poorly thought-out p’ships that are created daily.
I’ve found that the bare mention of, and at most the mere filing of such a PA is normally enough to force the ps to the table to sit down and work out a settlement…because even the most obstinate and stubborn P thereupon realizes the jig is up and he’s gotta get real about settling the deal.
So I advise you to see a lawyer, either where your P lives or the state where he can be found, and have him/her send your other P a letter over his/her letterhead telling him that unless you two can reach a settlement, such a PA will have to be filed and he (your P) will have to share in the costs of that suit.
This is exactly why the experienced lawyer who’s drafting a P’ship Agreement will include a “Right of First Refusal” in his drafted Agreements, whereby it’s stated that the P who first makes such a demand of splitting, or selling his Pship interests to the others at a certain price has thereby automatically given the OTHER P the right to buy or sell (his option) at that same price, or on the same terms that the demanding P says he wants.
Also the well-done P Agreeemnt will set out exactly where such a PA or any other court action might be filed so as to avoid fights over court jurisdiction, etc.
I actually witnessed a “First Right of Refusal” being played out when Brother/Partner A (one of two brothers who owed and operated an automotive body shop), sent the other brother(B) a letter demanding B buy out A for $X amount (way more than value of the business), and thereby giving B that same right.
And Brother B actually did then opt to sell to Bro A for that same excessive price which did then happen.
*You remember the two putative (claiming-to-be)Moms fighting over who was the real Mom and who had the right to the baby? And they finally got their PA into S’s Court and S ruled that the kid be split and half given to both claimants?
Ol’ Sol knew that the real Mom would never agree so the one who screamed NO was therefore the real Mom and the one he ordered to be given custody.
I talked to an attorny - PLEASE HELP - Posted by Bob
Posted by Bob on August 28, 2008 at 16:16:24:
I talked to an attorney.
I wanted to order a partition in kind rather than a partition by sale.
The attorney said that the partition applies to each lot separately and that
asking the court to give each one of us 100% ownership in one lot rather than 50% in each lot is a different issue.
Since they lots cannot be split he thought it would go to auction.
If there is an auction would not come up with enough money to pay off the loan.
Does this sound correct?
The partner refuses to accept any offer to split the lots
Any advice? or a recommendation for a lawyer in North Georgia?
Thanks