Highlights

ABC entered into an informal partnership with Acme to provide parts for semiconductors in the United States. ABC leased Acme manufacturing space and proceeded to provide ACME with a significant amount of business.

The defendant, a Korean company, lacked the resources or knowledge to set up a business entity in Texas. The plaintiff, ABC, handled all payroll, accounting, and other essential business tasks for Acme.

The partnership continued to grow, and as a direct result, both parties entered into the building of a new manufacturing location. They agreed that the defendant, Acme, would provide everything for the first half of the manufacturing process. The defendant, ABC, would provide everything for the second half of the process.

When the relationship between the two entities began to sour, ABC failed to uphold the informal partnership agreement.

The Action

Sul Lee, the attorney for the plaintiff, discovered that there was never a formal resolution to the partnership. She established that a partnership did exist, that Acme had taken over the manufacturing facility without compensating her client, ABC.

She was also able to establish that Acme had made false statements to customers and was unjustly enriched by their actions. Ultimately, ABC was awarded compensation for the breach of fiduciary duty and other breaches of contract committed by Acme.

At the resolution of arbitration, Sul was able to win a substantial award for John Doe to compensate him for his losses caused by the fraudulent actions of the defendants.

2013 – The plaintiff, John Doe, provided the initial sole investment of operating capital for the company, ABC. The investment totaled $1.5M.

The two other founders, Smith and Jones, did not provide any start-up capital, but were provided 16.5% and 13.3% of the company, respectively.

2015- Over two years, ABC grew exponentially.

Smith and Jones began to allege that the success of ABC Company was due almost entirely to their own efforts. They began strong-arm tactics to force John Doe to give them more shares of the company.

2016- Smith and Jones unexpectedly terminated Doe from the company at a shareholder meeting. His keys were taken and his company email access blocked.

“Sul Lee and team of attorneys’ thorough investigation and negotiation skills arm you with the power you need to win your case and get compensation for your losses!