Business Associations Keyed to Hamilton
Enea v. Superior Court
Enea (P) and the Daniels’ (D) partnership consisted of a sole asset in the form of a building in which offices were rented out. The Daniels (D) rented out office space to themselves at less than fair market value, So Enea (P) filed an action for breach of fiduciary duty. The Daniels (D) contend that there was no provision in the partnership agreement to rent out at fair market value, and no provision among partners to maximize rental profits. The trial court granted summary judgment to the Daniels (D) based off of a statue that asserts that partners do not breach duty if their conduct only furthers their own interest. The appellate court allowed the appeal.
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