My question involves business law in the state of: California
Hello Everyone,
I hope you guys can help me out with some advice.
I bought a Income Tax Business, Contracts were signed stating he would not compete or do any income taxes. Also that his client list belonged to me, as I am buying his business from him. This was back in 2013 dec to early january 2014.
Also in the contract we stated that to smooth the transiton he would work weekends to let his most loyal clients know what was going on so we could retain them for following years to come.
Our payment terms were $10,000 up front payment, plus 15% of take off of his clients for the 1st year and another 15% for retained clients the following year.
Here is the issue.
I paid him the $10,000 up front. He NEVER worked all tax season long, ignored phone calls, failed to give me the other half of the cleint list. Claiming his computer was corrupted, when I told him, bring the computer in please my son can still get the info off. He failed to do that. He dissapeared all of 2014 no one could reach him. We find out now that he did do tax retuns last year and instead of signing them he wrote self prepared on them. We also got word that a lady has been calling people off of our cleint list. So we are assuming he double sold the list of clients. She is an expired tax preparer. When we went to her place of business ( Her house is where she is running her business ) She denied everything. ( We called and set up a fake appointment to have our taxes done ).
What can be done here? Can we take him to small claims court to get our $10,000 back? plus some extra for the "X" amount of clients we may have lost because he gave or sold our cleint list to another person. We live in Southern California so not sure what can be done here. We thought we had our bases covered and still got a fast one pulled over us.
Hello Everyone,
I hope you guys can help me out with some advice.
I bought a Income Tax Business, Contracts were signed stating he would not compete or do any income taxes. Also that his client list belonged to me, as I am buying his business from him. This was back in 2013 dec to early january 2014.
Also in the contract we stated that to smooth the transiton he would work weekends to let his most loyal clients know what was going on so we could retain them for following years to come.
Our payment terms were $10,000 up front payment, plus 15% of take off of his clients for the 1st year and another 15% for retained clients the following year.
Here is the issue.
I paid him the $10,000 up front. He NEVER worked all tax season long, ignored phone calls, failed to give me the other half of the cleint list. Claiming his computer was corrupted, when I told him, bring the computer in please my son can still get the info off. He failed to do that. He dissapeared all of 2014 no one could reach him. We find out now that he did do tax retuns last year and instead of signing them he wrote self prepared on them. We also got word that a lady has been calling people off of our cleint list. So we are assuming he double sold the list of clients. She is an expired tax preparer. When we went to her place of business ( Her house is where she is running her business ) She denied everything. ( We called and set up a fake appointment to have our taxes done ).
What can be done here? Can we take him to small claims court to get our $10,000 back? plus some extra for the "X" amount of clients we may have lost because he gave or sold our cleint list to another person. We live in Southern California so not sure what can be done here. We thought we had our bases covered and still got a fast one pulled over us.
Business Disputes: Small Business Purchase Breach of Contract Issue
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