When astute, sophisticated business partners decide to "divorce," emotions can invade and accusations of wrongdoing fly, particularly by partners who do not control the books and records.
SCG was engaged on a case involving a law firm partnership where ill will between the partners caused a division and in true Shakespearean fashion, the old firm was dissolved and a new firm was created, leaving the Founding Partner out. The partners of the new firm conveyed assets by throwing debt onto the old firm and their CPA attorney used books and records to their advantage.
SCG conducted income and asset tracing as well as conveyance analysis. We wrote an expert report, provided expert opinion at deposition and served as testifying expert for the attorney who split from his colleagues. Our written report identified nearly $1,000,000 in damages. The judge stated "Plaintiff presented expert testimony from Mr. Sargent and Defendants presented testimony from their rebuttal expert … During the trial, the Court found the testimony of Mr. Sargent more reliable" and awarded full damages.
Partnerships are formed on mutual aspirations, respect and trust. When trust erodes, the partnership erodes. The lack of communication is the first sign of trust issues. Don’t wait – communicate with your partners.