Partnerships And Partners Keeping Money That Belongs To Another Person: A Conversion Claim

It is not uncommon for disputes to arise among business partners, and other similarly situated business arrangements between individuals and companies, especially at the end of the business or partnership venture, for one of the partners of the partnership to come into the possession of money from a third party customer that constitute partnership profits that belong to the partnership and thus the other partners as well. If the division of profits among the partners is a fixed percentage set forth in a written enforceable partnership agreement, the failure of the partner holding the money belonging to the partnership to account or turn over the money to the partnership or the other partners in the amounts owed to the other partners opens up the partner holding the money to legal claims of conversion by the aggrieved partners who want their share of the partnership profits. The claim of conversion arises when a person exercises unlawful dominion or control over the property of another in violation of another’s rights to the property. Property includes money. The wronged partners can seek for damages the money that is owed to them, plus prejudgment interest, punitive damages, and attorney’s fees. The conversion claim opens the door to damages against the wrongdoer that are far greater than the amount of money that the wrongdoer kept that belonged to another partner. Such a conversion case was brought by Rumsey and Ramsey for an aggrieved partner of a partnership that culminated in a settlement in 2026 for the sum of $700,000 for the client. Please contact Rumsey & Ramsey, a Dunwoody, Georgia law firm, at (770) 394-9400 to discuss your conversion claims.