Q: Made an investment of $10k (with a total of $40k-$50k with other investors). business dissolved and told I get nothing?
The business was never operational. Expenses we’re very minimal & no debt was accrued. I know some goes to taxes, but I get absolutely nothing back?
A: Depends on what your deal was, and what an accounting would show. Very hard for $10,000 to make something happen here. You can sue, but it would cost a high percentage of the recovery unless others joined. For $10,000 you can do a small claims case in NYC, and see if anything shakes out.
A: This is a case where a creative retainer might be useful. Meaning, because the dollar amount is small, you can consult with an attorney who can help you draft the litigation documents, guide you through filing and service, and preparation before court appearances. This is a much better option than you don’t everything purely on your own, as you are almost guaranteed to make a mistake which will make it very hard for you to prevail. Despite the relatively small amount, this is business litigation, after all. You need to do it right the first time. You don’t want to get into a situation where you botched your case and are then expecting to rely on the judge’s good will on a motion to reargue your case. This seldom works. Appeals also cannot cure failure to properly present your case; only prejudicial legal errors by the trial judge.
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