Business Purchase Dispute Resolution

Summary

Tabitha Fotea-Morton and her husband partially bought a business selling dietary supplements and probiotics. They suspected fraudulent activities and filed a small claims case to recover $10,000. They did not sign any contract at the time of purchase but received verbal promises about the businesss profitability. They have evidence in the form of text messages, pictures, and the original business proposal. They have paid $15,000 so far, $10,000 through a cashiers check and the rest through Zelle. They have bank statements as proof of these transactions. They have ceased all operations and returned the inventory. They have a signed document from the seller acknowledging the receipt of the returned inventory. The small claims case will be heard at the Clallam County Courthouse in Port Angeles, Washington.

Full Conversation

My husband and I partially bought a business selling dietary supplements and probiotics. I filed a small claims hearing to get $* returned because after 8 days we suspected a lot was off. We did not see any books, he wouldn’t sell us the business name, and we were only making $* off of one client. The total sun he wanted for this business was $26k
Did you sign any contract or agreement when you partially bought the business?
No.
Did you receive any written or verbal promises about the business's profitability or operations?
Verbal yes.
What were the exact verbal promises made about the business's profitability or operations?
That the gross was $* a month.
What evidence do you have to support your claim about the verbal promises made? In Washington, verbal contracts can be legally binding but proving them can be challenging.
I took pictures and have text messages from him.
What is the content of the text messages and pictures you have as evidence? In Washington, these could potentially be used to support your claim in court.
I have the original business proposal alongside client lists, suppliers, wholesale pricing, his distributors along with texts explaining what he was doing.
What actions have you taken so far regarding this issue?

In Washington, evidence like text messages and pictures can be used in court to support claims about verbal contracts.
I have contacted attorneys in Seattle. I filed a small claims yesterday and sent it via certified mail to collect $* but I will take a $* loss. So far he has paid back $4k in cash but doesn’t know when he will be able to pay the remaining 11k balance owed. He is now trying to say we owe him a restock fee, labor, and travel/lodging expenses.
What is the basis for his claim of restock fee, labor, and travel/lodging expenses?

In Washington, small claims court can handle cases up to $*,*. The King County Small Claims Court in Seattle can be reached at (*) *-*.
I am not sure. Yes I am aware small claims can only give us 10k back.
Did he provide any written documentation or agreement stating that you would be responsible for restock fee, labor, and travel/lodging expenses?
Not at the time of partial purchase, just after we decided to back out.
What does the documentation provided after you decided to back out state about the restock fee, labor, and travel/lodging expenses?
It states he put * miles on his vehicle which is not true, he spent * hours packing * boxes of inventory, and hotel expenses.
What evidence do you have to dispute his claims about the mileage, labor hours, and hotel expenses?
he lives in north bend, Oregon. If you Google map the distance round trip to Sequim Washington at our residence, it’s only * miles.
What proof do you have that he only packed * boxes of inventory and didn't incur the claimed hotel expenses?
I have photographs of all inventory and client lists we received.
What is the content of the photographs and client lists you have as evidence?
It contains a photo of all * boxes and pieces of paper he left us with. All handwritten by him.
What was the agreed upon price for the business and how was it supposed to be paid?
$26k
What was the agreed upon method of payment for the $26k?
Zelle, cash, or cashier check.
What amount have you paid so far and through which method?

In Washington, evidence of payment can be used in court to support claims about verbal contracts.
$15k, * on a cashiers check, the rest of the $5k was through Zelle.
What proof do you have of these transactions?
statements from the bank I removed funds from.
What is the name of the business and the person you bought it from? In Washington, you can use bank statements as evidence of payment in court.
Jim Wright - Wright Synergy Connections
What is the current status of the business? Are you still operating it or have you ceased all operations?
i have returned inventory, had him sign a paper stating he received everything back fully. I am currently not doing business with the company any more.
What is the content of the paper he signed stating he received everything back fully?
It says “to whom it may concern on September 24th * I, Jim Wright have received all inventory in full.” Along with a signature and date.
What actions has Jim Wright taken after signing the document stating he received all inventory back fully?
He gave us a 60 day payback promise, but on September 26th we received a text stating he did not know when he would be able to pay the amount back because he owes $5k to the irs for taxes in *
What proof do you have of his *-day payback promise and his inability to pay due to IRS debt?
i have a paper with his signature agreeing to it.
What does the signed paper specifically state about the *-day payback promise?
it includes the restock fee, it has two signature lines. We however did not sign it, he did.
What is the exact amount and details of the restock fee mentioned in the signed paper?
$* is what he feels owed
What does the signed paper specifically state about the restock fee and its calculation?
its not specific. It is *% off the tip of the $15k owed.
What is the exact wording of the restock fee clause in the signed paper? In Washington, the clarity of contract terms can impact their enforceability.
It’s a lot to type.
What is the current status of your small claims case?
to get paid back $10k
What is the date of your small claims court hearing?
october 26th at *:30pm
What is the name and location of the court where your small claims case will be heard?
clallam county courthouse port angeles wa
port Angeles Washington
Clallam county courthouse Port Angeles, Washington *
What is the name of the judge presiding over your case?

Clallam County Courthouse contact details:
* E 4th St #*, Port Angeles, WA *
Phone: (*) *-*