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If someone I sold my small bsuiness to is constantly sueing me and trying to get the company for free. If I was in breach of contract once an now he second 2 times they keep on trying to lower the priceon what he owes how can I get him to stop. His wife signed as managing director of an LLC. I feel like I would be fighting a ghost and all the assetts are in the husbands name. If these other allegations are frivilous and he cant show proof how can I fight back?

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Long Island, United States

Already Tried:
Nothing yet. He wants the business for free. There are so many holes in this contract its a joke but being that his wfe signed as the managing director and if he is listed as an officer and he is the one who is tied to the company directly can we go after him as well if things get ugly?

Customer (name blocked for privacy)

Status: Closed Value: $65

Dear Sir,

There some cases which have been decided where the court has become so frustrated with a litigant launching vexatious and frivolous litigation that it has ordered the person launching the litigation to pay the legal costs of everyone involved and alloted a claim for damages pursuant to the bringing of vexatious litigation. An example of this type of case is: Safir v. United States Lines , 792 F.2d 19, 23 (2d Cir. 1986). Those intent on launching proceedings usually become much more cautious when they are aware that they may have to pay the costs of the other side if their claim is declared to be vexatious. I can refer you to a local attorney if you would like some help with this matter from someone who is liscensed in your state and provide formal advice and representation. I hope that this helps.

Regards,

David Coleman

This message is not legal advice and is given for informational, research and publication purposes only. No client lawyer relationship created. No liability incurred for use of this information. Thankyou for your business.

Let me re phrase. If I was in breach once before which cost me 30k off the back end and now he sent a letterof what I know to be false that he is seeking further legal action what type of responce can I send if I know its BS and he is just trying to get me again. I feel he will keep on doing this. What grounds can I go on to a reply to stop his nonsense and what do I say? I dont feel like spending 10,000 going back and fourth on hearsay. If I am forceful enough I just want to stop him dead in his tracks in a simple letter saying that if we go to litigation I am going to proceed to do???????? What?? What can I do?

Dear Sir,

Normally when a matter is settled and damages are paid, the side paying damages will demand as a condition of payment that the other side sign a waiver of all future causes of action and any rights to further compensation or damages. Once the other side has signed a settlement document like this, it is very very difficult for them to mount any further action because they have given an undertaking to avoid it. Also, any action he mounts will need to be proven in court and if it simply cannot be proven by reference to physical evidence, the evidence of witnesses and documents then the case will not stand. Lying to a court is a very serious offence offence know as perjury which can be punished by imprisonment or large fines. Also, I am not sure if you are aware of this, but hearsay is not normally admissable as evidence in court. I think your best solution is negoiate your way into a position where they sign a waiver similar to the one I described above.

Regards,

David Coleman

Reply to David Coleman's Post: Let me re phrase. If I was in breach once before which cost me 30k off the back end and now he sent a letter of what I know to be false that he is seeking further legal action what type of response can I send if I know its frivilous and he is just trying to get the business for free from me without any further obligations of making any more payments. I know he will keep on doing this and he covered himself pretty good. His wife was the only signature on the original contract as a "Managing Director" of the LLC. But I read somewhere if other parties meaning the husband who really runs and owns the business is states that any monies hehas put in he by dedfault becomes a member with vested interest in the LLC. What grounds can I go on to a reply to stop this nonsense and what do I say? I dont feel like spending 10,000 going back and fourth on hearsay and litigation on nonsense which he has no proof because its simply false. With that being said what can I do as a response to this letter that was sent to me saying he has reason to bekieve that I am in breach of contract which I know is a le and he is just fishing how do I respond to such a letter of frivilous accusations that have no merit? Furthermore, what can I do to counter this so he does not keep on trying to do this?

Reply to David Coleman's Post: Let me re phrase. If I was in breach once before which cost me 30k off the back end and now he sent a letter of what I know to be false that he is seeking further legal action what type of response can I send if I know its frivilous and he is just trying to get the business for free from me without any further obligations of making any more payments. I know he will keep on doing this and he covered himself pretty good. His wife was the only signature on the original contract as a "Managing Director" of the LLC. But I read somewhere if other parties meaning the husband who really runs and owns the business is states that any monies hehas put in he by dedfault becomes a member with vested interest in the LLC. What grounds can I go on to a reply to stop this nonsense and what do I say? I dont feel like spending 10,000 going back and fourth on hearsay and litigation on nonsense which he has no proof because its simply false. With that being said what can I do as a response to this letter that was sent to me saying he has reason to believe that I am in breach of contract which I know is a lie and he is just fishing, how do I respond to such a letter of frivilous accusations that have no merit? Furthermore, what can I do to counter this so he does not keep on trying to do this?

Reply to David Coleman's Post: Sorry for the 2 duplicates. Its somewhat complicated because I signed this agreement with his wife as the "Managing Director" of an LLC to really protect themselves. I know he is fishing and I signed a contract that I should not have done because there is no protection for me and I have paid for this mistake dearly. What type of response can I send if I know its frivilous and he is just trying to get the business for free from me without any further obligations of making any more payments. I know he will keep on doing this because he covered himself pretty good. His wife was the only signature on the original contract as a "Managing Director" of the LLC. But I read somewhere if other parties meaning the husband who really runs and owns the business and everything is in his name it states that any monies he has put in the LLC himself which I know he has done then by default he becomes a member with vested interest in the LLC. What grounds can I go on to a reply to stop this nonsense and what do I say? I dont feel like spending 10,000 going back and fourth on hearsay and litigation on nonsense which he has no proof because its simply false. The letter was sent certified from his attorneys office claiming they have information that I am in breach of contract which I know is a lie and he is just fishing. Then it further states in the letter they will be witholding all further payments under the Agreement and is considering further legal action against me. But it was left very open ended with no next move or what they are doing or any proceedings and I find this letter to be strange because if he had any solid proof I would have recieved a blue back in the mail already. How do I respond to such a letter of frivilous accusations that have no merit? Furthermore, what can I do to counter this so he does not keep on trying to do this?

Edited by Customer (name blocked for privacy) on May 5 2008 at 12:30 AM

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