We've written several times about the recent legal disputes between Steven K. Fleischmann and his former partners at Washington, DC-based risk consultancy, TD International. The firm filed suit against Fleischmann claiming beach of contract and seeking to recover money they say Fleischmann pocketed by skimming business surreptitiously to a side-business, Tertuim Datur International.

The initial filings in the case have provided an interesting window into TD International's activities (Fleischmann contended that these sorts of side-ventures were common amongst the partners) and raised questions as to whether Fleischmann had ever officially signed off on his partner agreement in the first place. In late October, Fleischmann filed a counter suit against TD International principals, William Green and Ronald Slimp.

The countersuit lobs the breach of contract claims back at Green and Slimp, citing their failure to pay Fleischmann for his interest in the company when he agreed to exit the partnership in May of 2008. The suit also claims that Slimp and Green, in pursing their own third-party business ventures, failed to provide "best efforts and substantially all of their working time" to TD International, violating the terms of the partner agreement drafted back in 2004.

Fleischmann's complaint questions his level of compensation over the course of the partnership, citing numbers that would indicate his distributions from TD International were not commensurate with his position as a 1/3 partner in the business. Revenue and distribution numbers are provided in the complaint to illustrate that Fleischmann's distributions were insufficient, relative to the terms set forth in the TD International partnership agreement.

Also, intriguingly, as early as September 2004, Fleischmann contends that William Green and Ronald Slimp were operating an entity called TD Federal Services. In 2006, according to the complaint Ronald Slimp also conducted "substantial business" via TD Equity Partners. While Fleischmann states that he received some compensation from these entities, his complaint contends that these distributions were likewise insufficient.

Fleischmann is seeking damages to the tune of $4,000,000 in lost compensation and property.

No doubt, answers to these claims from TD International are forthcoming.

- MDT

Labels: Ronald Slimp, TD International Steven Fleischmann, William Green