Two partners started a business together but decided to part ways after a few years.
One partner (“A”) wanted to leave the business and not pay the other partner (“B”) anything. At issue was some level of debt the two partners acquired to get the business going. Losing one partner was going to reduce the cash flow of the business, leaving the other partner in a precarious situation.
My client and I met with the other partner and my counterpart who represented her (“A”). His position was, “My client’s previous sales, which are still in Accounts Receivable, are enough to pay for her portion of the debt. So, my client owes you nothing!”
My reply was, “All of the Accounts Receivables belong to the business, not your client. Furthermore, all the debt is held with joint and several liability. So, if the loans default, the bank can come to your client for 100% payment at their discretion. We want you to pay for your half of the debt.”
We got the payment we were seeking.