When a business is formed and there is more than one founder, contratcs are written. These contracts help the partners determine how the business will be structured, and they also, ideally, help guide the partners should there be any issues down the road. In New Jersey, one co-founder of a company that created an electric motorcycle is embroiled in partnership disputes despite having documentation from the company’s founding. The partnership disputes swirls around stock options for the other partners, but, as with most cases, it’s quite involved.
The company’s electric motorcycle was heralded as one of the greatest inventions in 2013. The men who cofounded the company were the New Jersey defendant in question and two other men who live in another state. In November 2013, the two other men terminated the employment of the New Jersey man, alleging that he was physically abusive among other concerns.
Currently, the two remaining partners want to enforce part of the company’s original contract that says they can purchase the majority of the corporate stock that the New Jersey cofounder has. The cofounder is now planning to countersue as he feels that their claim is unfounded and unfair. He alleges that his former partners are simply trying to use fraudulent means to advance their lawsuit.
As with all partnership disputes, this one is complex and will have to be investigated thoroughly. It also brings to light the reality of organizational issues, many of which can require legal intervention along the way. At this point, there has been no determination made in this case, but it will hopefully be sorted out.
Source: wdtimes.com, Electric motorcycle company sues NJ co-founder, No author, Dec. 30, 2013