This topic contains a solution. Click here to go to the answer

Author Question: Partners as Fiduciaries. In 1974, Dunay, Weisglass, and Koenig formed a partnership to engage in the ... (Read 50 times)

Caiter2013

  • Hero Member
  • *****
  • Posts: 607
Partners as Fiduciaries. In 1974, Dunay, Weisglass, and Koenig formed a partnership to engage in the brokerage business. They made no capital contributions to the partnership and agreed to share all revenue and expenses on an equal basis. The partnership entered into an agreement with Ladenburg, Thalmann & Co to manage the latter's institutional investors services. The agreement did not provide any specific time limit. Each partner was appointed vice president of Ladenburg. Later, Dunay was appointed president of Ladenburg and was promised an additional share of profits for additional work on a year-to-year basis. Dunay contributed his salary as Ladenburg president and his additional share of profits to the partnership. On April 2, 1979, Weisglass and Koenig told Dunay that they wished to dissolve the partnership and did so immediately, forming their own partnership, W.K. Associates, the same day. Dunay received from the original partnership 15,044, the amount reflected on the partnership's records as his unpaid share of partnership income. Dunay remained with Ladenburg for a short period of time, leaving when the Ladenburg board of directors removed him as president and appointed in his place Weisglass on May 10. Dunay then filed a lawsuit, alleging, among other things, that Weisglass and Koenig had breached their fiduciary duty in dissolving the partnership and forming a new partnership. As part of the suit, Dunay sought some of the profits earned by Weisglass and Koenig after the dissolution. The defendants filed a motion to dismiss Dunay's complaint. In whose favor did the court rule and why? Discuss fully.

Question 2

If an agency relationship did not establish a rate of compensation for the duties of the agent, the principal must pay the customary rate for such services.
 a. True
  b. False
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jackie

  • Sr. Member
  • ****
  • Posts: 324
Answer to Question 1

Partners as fiduciaries
The court found nothing tortious in the actions of Weisglass and Koenig in dissolving the at-will partnership and forming a new partnership. The court recognized that Dunay was entitled to his share of income and assets of the partnership but found that there were no partnership assets to be distributed. On dissolution of the partnership, any fiduciary duty that Weisglass and Koening owed to Dunay ceased. The court ruled that Dunay was not entitled to any of the profits earned by Weisglass and Koenig after the date of dissolution based on their personal ability and services, independent of the dissolved partnership's assets.

Answer to Question 2

TRUE




Caiter2013

  • Member
  • Posts: 607
Reply 2 on: Jun 24, 2018
Wow, this really help


mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Carbamazepine can interfere with the results of home pregnancy tests. If you are taking carbamazepine, do not try to test for pregnancy at home.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

For a complete list of videos, visit our video library