Are partners liable for damages to other partners in a general partnership?
I am a 50/50 partner in a business. We have a simple two paragraph partnership agreement. My partner is the website designer and has the passcodes to the website. For years he has refused to put certain inventory on the website, that we jointly agreed to purchase because he later developed the idea, fewer sku’s is better. This is even though we already own and are storing the inventory. For years he refuses to venture into new markets where we could be selling our current inventory. We are struggling financially partly because of this limited sku idea. Frustrated with the business, he now has stopped participating in the business altogether and stopped performing his partner duties (which is hurting our income) while he starts a new business. He hates coming to or participating in the business. However, he is still taking money out of the business checking account. If we go out of business, we will have to scrap all of the inventory for pennies on the dollar.
He has caused the loss of hundreds of thousands in lost revenue and has us going out of business while he gets his new business going. Is a negligent partner liable for damages he creates for another partner? Can I take him to court and get access to the website? He’s offered to sell his percentage but some of his terms are unreasonable—for example, he is demanding to stay on the business checking account until he is fully paid for his percentage. In order to get him to a reasonable position to sell, I want to ask for a judge to order that he does his partner duties each day. Is that something a judge would order?