Questions & Answers
Recovering paid investment from partners for breaching obligations
We invested in a clinic venture (LLC) as a 25% partner with an investment totalling approx. AED 600k.
The starting date of the clinic was supposed to be 31 December 2018 as per the sale and purchase agreement. 9 months have passed, and even the basic inspection to activate the license has not been done.
I want to file a case against the original investors whose scope of work includes the activation of the clinic license, as they are currently deceiving me and creating excuses not to start the clinic.
They haven't shown till date a breakdown of expenses and where my investment has gone as the condition of the clinic has worsened.
Additionally, they are now asking for more money or threatening to close down the clinic as they haven't paid the rent for 5 months and have informed me only this week.
Kindly help me in this case. What can I do?
Dear Sir/ Madam,
Thank you for reaching out to me on this.
As per the brief statement provided by you, you have a very legit and substantial claim against your partners for recovering the dues as they have failed to fulfil their obligations under the agreement.
I would require a copy of the Investment Agreement for initial review and better understanding to advise you better. You may hide all the confidential information if any.
You will have all the payment receipts disclosing transfers made to the partner or company account and this will be the base of your legal case before Court.
The payment receipts plus the Investment Agreement will have to be submitted before the court to substantiate your claim.
All the correspondences between you and the other parties will be crucial though.
You can send me the agreement copy for review as of now and then we can take it forward with filing the case to recover your dues.
Information regarding filing, court fees and misc fees can be discussed over email or phone.
You can reach out to me on email or phone for further clarification and assistance.
Regards,
Hari Wadhwana
Dear Sir/ Madam,
Based on the information you have provided above, it appears as though you have an irrefutable right to recover your 600,000 Dirham investment by initiating a claim against the partners in the clinic for breach of contract.
In order to give you accurate information, I will need to first review the Agreement and any corresponding emails you have with the partners regarding the status and operation of the clinic.
You can contact me directly on email.
Once I have reviewed these documents, I would like to schedule an in-office meeting to review your legal options on going forward.
I look forward to your reply.
Yours faithfully,
Brett Westernoff
Dear Customer,
Before consulting on what you shall do further in this matter, we have to review your investment agreement or the SPA you referred to, along with the supporting email communication.
Insofar as such issues as to who shall obtain the license, bear rent and other current expenditures are supposed to be regulated by the agreement.
Next question to be clarified is: how did you practically transfer the investment to the "partners"?
And, therefore define which opportunities you have in the recovery of the investment from those persons and which strategy to opt for this.
Your matter, therefore, shall be subject to complex analysis and thoughtful choice of strategy. Please feel free to contact us for an extensive consultation.
Sincerely,
Khalifa Bin Huwaidan AlKetbi Advocates & Legal Consultants
