Litigation possible for real estate partnership dispute

On Behalf of | Jul 10, 2019 | Commercial Litigation |

Having a business partner can often prove useful to company owners. However, it is not uncommon for disputes to arise between partners. If those problems are serious, the parties could wind up in the courtroom handling litigation in efforts to come to a resolution to the issues that have come about.

Texas readers may be interested in such a dispute currently underway in another state. According to reports, the lawsuit involves two partners from a real estate development company. Apparently, one of the partners has accused the other of embezzling money from the company for personal use, such as to cover personal debt and pay for other business opportunities. It was noted that the partners’ company defaulted on a mortgage loan related to a 6-acre parcel of land intended for development, and as a result, that property has been set for auction, which has been postponed twice as the company worked to pay back the lender.

The man bringing the lawsuit claims that he raised $6 million for the company and that his partner has not upheld his duty of developing projects. Ledgers for the company allegedly show that money has been stolen from the company, but a specific amount was not given in the report or the lawsuit. The accused partner stated that he expected the lawsuit to be dismissed and provided no further comment.

Litigation involving a business partner can be difficult. Of course, when partnerships do not work out and serious issues with the company have unfolded, it may be necessary to move forward with such legal action. If Texas company owners are having problems with their business partners or other aspects of their company, they may wish to discuss their options with their legal support.