Padawer v. Yur
Even if there is no signed contract, a court can exercise its equitable powers to award property. Allegedly, the plaintiff, Lucien Padawer, purchased a women's clothing and jewelry business in New Haven and managed the business between 2007 and 2009. The plaintiff was unhappy, because managing the business required extensive separations from his family in Colorado. Allegedly, the defendant, Ronen Yur, expressed an interest in purchasing the business. Although Yur denied that he agreed to purchase the business, Yur traveled to California with the plaintiff and met his suppliers. The plaintiff sued Yur and Yurway Design LLC, which argued that there was no contract to purchase, and the plaintiff overstated the amount of revenue that the business generated. The court found that in 2007 the plaintiff informed Yur that gross revenue was more than $400,000. Economic conditions in 2008 affected sales, and the court was not persuaded that the plaintiff overstated the gross revenue. In 2009, Yur and Yurway Design LLC signed a lease that Yur guaranteed. Yur took over and managed the business, without compensating the plaintiff. Yur signed his initials on parts of the unsigned business asset-and-purchase agreement, which indicated the prices for fixtures, equipment, inventory and goodwill. The court found that Yur knew about the cost of business assets. The court granted judgment to the plaintiff in the amount of $44,000, which the defendants can pay at the rate of $2,000 per month.