Namyangju Civil Attorney Assistance | Helping a Client Sued for a Settlement Amount After Dissolution of a Partnership and Winning the Case

The client, who currently runs a cafe, was in a difficult situation because the friend who had co-founded the business suddenly withdrew from its operation and filed a suit claiming a settlement amount.

Seeking assistance, the client looked for an attorney with extensive civil experience and came to the Namyangju office.

As in the client's situation, forming a partnership and jointly carrying on business activities may legally be referred to as a partnership association.

As in the client's case, when someone withdraws from a partnership association, the partnership property must be divided by calculating the shares of the withdrawing member and the remaining members.

However, if the financial position is in deficit at the time of withdrawal from the partnership association, there is no share to calculate, so no refund can be received.

There is a relevant precedent, as follows.

In this case, if there was no specific contract on the distribution of the settlement amount, it is calculated according to the profit-and-loss distribution ratio, and if that ratio was not set, it is calculated according to the ratio of capital invested.

Accordingly, as in the client's case, when 🔗rescission or termination of a contract arises between business partners, the property should be divided through an appropriate agreement, but if no agreement is reached between the parties, the assistance of an attorney experienced in this area is needed.

The Namyangju civil attorney carefully reviewed the conversations, documents, and other materials concerning the partnership between the client and the plaintiff, and on that basis presented pleadings that could work in the client's favor.

The court, accepting the attorney's argument, issued a judgment stating, “The plaintiff's claim is dismissed. The costs of the litigation shall be borne by the plaintiff.”

As in the client's case, in civil litigation involving settlement amounts, damages, and similar matters that arise when a partnership breaks down, gathering evidence is more important than anything else.

For this reason, it can be helpful to secure materials that show the financial flow, such as transaction records, receipts, contracts, and text messages.

To do so, rather than judging the matter alone, it is most important to obtain the assistance of an attorney experienced in civil trials.

If you are facing a situation like the one above, we recommend obtaining an 🔗attorney referral from Daeryun Law Firm.