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Business Organizations Keyed to Ragazzo
Drashner v. Sorenson
Citation:63 N.W.2d 255
Plaintiff, Drashner, and Defendants Sorenson and Diaz decided to start a partnership. The three partners had an oral agreement. After the partners drew their portions, the rest of the money was reserved to pay for operating expenses and to pay Defendant and Diaz for their initial capital contributions. The partnership quickly became successful. Plaintiff having no independent earnings of his own, asked to withdraw more than his share to cover personal expenses. When the Defendants refused, Plaintiff sued to dissolve the partnership to cash out his share. Defendant and Diaz argued that the Plaintiff violated the partnership agreement terms by demanding a bigger share of the income. Further, they alleged that he drank most days and as such they didn’t wish to continue working with him. The trial court ruled that the Defendant and Diaz were entitled to continue the partnership after paying Plaintiff the value of his share. The court further found that the Plaintiff’s value was actually zero after accounting for the payments due to the Defendant and Diaz. Plaintiff appealed noting that the court failed to take the business good will into account.
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