Corporate Law Being sued by former in-law over business investment

[ApexBob]

4 years ago, in 2004 my wife's sister and her husband gave us (primarily me) $35,000 to invest in a business venture in the residential and commercial security business in Phoenix, AZ. My partners (2) and I agreed to pay $450 a month back until the debt was repaid and I would give them 10% of my share of the company. My partners agreed to pay me a salary to help run the company. Up until 7/2007 we had made all the payments. In 2007 my wife (at the time) and I were having financial strains and they agreed to loan my wife and I the money ($450) for a couple of months, that we were paying to them. He agreed. In 2008 due to the market conditions our company ran out of money. I was served papers, at my settlement conference for divorce on 11/3/08, that they were suing me as a "married man", the comany and my partners (not listed by name) in the summons. They are claiming fraud and several other items in the suit and want compensation and legal fees. My business partners are operating the business while I stepped back to find gainful employment. The company exists and I still own my 33% stake in the business. I cannot afford an attorney but am being told that this lawsuit is frivilous by attorneys who did take my call. I only have until this Friday (which is 20 days) to respond and am wondering how I can or if I can without legal council. My soon-to-be ex-wife, is not named in the summons, I feel should be part of this action as a defendent and feel this is just a vindictive act trying to extort money from me (that I don't have). I can scan and send the documents if there is anyone who can help. If this judgement goes aginst me it will be very difficult to see my kids as I live in CO now and this will undoubtly pinch my income. Please help!!!!

 

[dee_dub]

You can defend yourself, but it's rarely advisable. Not doing anything is also unwise - they'll just get a default judgment. You'll need to file a statement of defence (or whatever the equivalent is in AZ). The claim you were served may indicate what you need to do; if not, get on the court's website.

There is probably also a procedure for adding your wife as a third party or co-defendant to the lawsuit if you really think she should be one.

I usually don't hesitate to assess the merits of a case, but your description of the facts is confusing.

 

[ApexBob]

You can defend yourself, but it's rarely advisable. Not doing anything is also unwise - they'll just get a default judgment. You'll need to file a statement of defence (or whatever the equivalent is in AZ). The claim you were served may indicate what you need to do; if not, get on the court's website.

There is probably also a procedure for adding your wife as a third party or co-defendant to the lawsuit if you really think she should be one.

I usually don't hesitate to assess the merits of a case, but your description of the facts is confusing.

Thank you. I am looking at going into a legal service place for help. If I can provide any more information for you to assist me, please let me know. I understand though it may be hard to handle in a forum and that more help might not be possible.

 

[dee_dub]

The confusion arises from writing style - it's just not always clear who did what. Additionally, it would be useful to know the specifics of the charge against you: fraud in what way? what other claims?