Full question:
My significant other and I have created and operated a successful restaurant for the past two years. Originally a friend volunteered to secure the line of credit to get it up and running and was the one who filed for the LLC which the restaurant operates under. He has now forced closure of the restaurant and wants us to buy the restaurant from him stating that he was the owner and my significant other was an employee. I have never been compensated for the many hours of work I have been at the restaurant. Is this a case for theft by deception? Can I seek compensation?
- Category: LLC
- Date:
- State: South Dakota
Answer:
A theft by deception charge requires proof of criminal intent. Your rights to compensation will likely depend on contract law principles. The roles of members in an LLC are defined in the operating agreement and bylaws. A buy-sell agreement often outlines the terms for future sales of a member's interest. Review these documents carefully to understand your rights and obligations, or consult a local attorney for a detailed review of your situation.
If someone has been unjustly enriched at another's expense, they may need to make restitution. Even without a formal contract, a court might require restitution for unjust enrichment if keeping the benefit would be unjust. In South Dakota, theft by deception is defined under SD statute 22-30A-3, which outlines how a person can deceive another to obtain property. This includes creating a false impression or failing to disclose important information. However, mere failure to perform a promise does not alone indicate deception.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.