So I'm relatively new to the whole "real estate" and "business" world... but right after graduating, I decided to venture into buying a business. I did a lot of research, scoped out a lot of places, and finally found a restaurant.

After a lot of meetings and paperwork involved, I finally gave the owner the down payment, applied for a business license and a trade name registration. All I was waiting upon was for the landlord to give me the lease. In the meantime, I worked at the restaurant for about a month (with no pay) to learn the ropes. About a month went by and a couple of days ago, the lease was rejected by the landlord for certain stipulations (none on my part) and in the end, the deal fell short.

Now, I went back to the original owner to request that he returns the down payment, and he flat out said that because I learned how the business went, that "knowledge" alone is worth the down payment and he owes me nothing.

... from speaking to my lawyers, this is absurd. My attorneys are currently on this case, but I was wondering if anyone had any experience with a case like this. I've never heard of this. Does this guy actually have a case?

Sounds shaky to me cause if that is the way it works I should go into business and do the same thing with some scheme I make up. Charge people a down payment teach them some ropes and then back out and keep the down payment. Hmmmmm, I'm onto an idea!

Don't let this go. The principal of the thing is enough worth going to court over alone.
Sounds like he is just trying to get out of paying up and if you have a good honest lawyer I think he would have told you if you don't have a case.

No. Unless he somehow had this in writing prior to you working for free, then he has no case that I can see. I am sure it does not state anywhere in the purchase contract that you and he signed anything about "free work in exchange for you being charged for the knowledge". Sick your attorney on him...

n0help: no way I can "let this go"... as the down payment alone was around 120k.

My attorneys are currently on it... and they're telling me that he has absolutely no case, however, it may take some time (in lawyerspeak, I believe this means money).

Yeah you have a case. The most they can do (if even) and it would have to be in the contract too, is something like tell you you are not allowed to open the same type business within so many miles of theirs. Again that depends on the circumstances and what the contract says. But since HE broke the deal a contract may not even apply.

I'll chime in here. Without an agreement to that effect this guy is blowing smoke. You worked there in good faith under the assumption you would be buying the place. Once that fell through for no fault of your own, you are entitled to your deposit back.