Los Angeles, CA asked in Contracts, Intellectual Property and Internet Law for California

Q: I entered an agreement with an LLC based on a false info provided by it sole owner, can I sue the owner personally?

The agreement was for app development. However it was not usual. I agreed to accept 25% of the contract while the remaining balance is to be paid once the project gets funded. The client stated that they own the intellectual properties of the idea and that it is legally "clean". A few months into the execution of the contract I got a letter from a person who claims to be the owner of the IP. I was requested to cease and desist and development activity and I was threaten in a lawsuit. This potential legal issue decreases the odds of getting investment significantly. Nobody would invest in a business with a potential legal IP issue. Hence decreased my odds in getting my investment back. I would like to know if I can personally sue the person for the contract? Also, is the client's action constitute a criminal offense?

1 Lawyer Answer

A: If the owner personally made a material misrepresentation, then yes, you would be able to sue him or her personally. I recommend speaking with an attorney would has handled these type cases in your state.

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