Cliffs: Being sued by the person who bought my business. They took ownership for 4 months but later got in trouble with the law and are now in jail. They are suing for their money back bc not all of the items in the contract were delivered
- I have the option of Arbitration or circuit court.
- Arbitration is cheaper but it is based on the decision of one person.
- Circuit court is more expensive and takes longer but you get the decision of multiple people in jury.
- My lawyer wants circuit because he says it is better to have opinion of multiple people, plus the possibility of getting it thrown out before it ever gets to court
Cliffs: Being sued by the person who bought my business. They took ownership for 4 months but later got in trouble with the law and are now in jail. They are suing for their money back bc not all of the items in the contract were delivered
- I have the option of Arbitration or circuit court.
- Arbitration is cheaper but it is based on the decision of one person.
- Circuit court is more expensive and takes longer but you get the decision of multiple people in jury.
- My lawyer wants circuit because he says it is better to have opinion of multiple people, plus the possibility of getting it thrown out before it ever gets to court
How much stuff was not delivered? Is it sufficient to constitute a breach?
Is it too late to deliver what wasn't originally included now to fulfil the contract?
---------
My initial impression is to suggest court because give the other guy's situation I imagine making it as expensive as possible for him would discourage him from proceeding but it really depends on all the details.
One reason might be that the lawyer's interest is obviously in going to court. A good lawyer would not allow padding billables influence his advice but if on the other hand we're talking about a lawyer operating out of a mall we can pretty much assume he would.
How much stuff was not delivered? Is it sufficient to constitute a breach?
Is it too late to deliver what wasn't originally included now to fulfil the contract?
Well there were a few items not delivered but it was on both sides. Small stuff that would not affect the day to day operations. We were both acting in good faith. It is definitely too late as they no longer have the store.
Well if they no longer have the store I don't see how he could hope to recover his money.
I assumed he was trying to unwind the deal so you'd have the store returned and he would get his money back. He can't ask for the money back if he sold or in some other way disposed of the store.
At most he could sue you for the value of the items that you did not transfer to him but if they are minor I can't see how that is worth it for him.
I've experienced about 10 arbitrations and about 5 trials between small businesses and/or individuals (more of both for huge companies suing each other), as an outside observer. In my opinion, if someone is being a scumbag and trying to use the legal system to weasel their way into some money they don't "deserve," arbitration will not be friendly to them, whereas in a trial, legal loopholes are legal loopholes and cannot simply be dismissed.
Totally speculation, and I'm far from being a lawyer, but in arbitration, I could see them saying make two lists, stuff you didn't deliver, and stuff they didn't deliver, net out the values, and then pay what (if anything) you owe. In a trial, it seems like it is never that simple.
I don't think you've give enough information for anyone to definitive advise, but I do think the advise others have given you is solid.
As Henry wrote, the amount of $$ involved is very relevant--if it's a fairly small amount settling would almost certainly be the way to go. Very often in legal situations, even when you win you lose, i.e., the only ones who really win are the lawyers involved.
Getting a free consultation from another firm / lawyer is an absolute must--in fact, if it's a significant sum of money I'd get several consultations.
If you truly feel you are in the right & that you don't owe them anything, AND they are basically broke & in jail, it's likely true that if you can make this situation too expensive & overly difficult for them it will likely go away. But if it's a situation where offering them $5,000 would also make it go away, maybe that's the prudent thing to do??
IMO you've given far too little info. to give you any advise other than which you've already been given. That said, unless we're talking big money, generally-speaking I'd go with arbitration.
