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Business Assoctiations Keyed to Gabalson, 3rd Ed.
G & S Investments v. Belman
Citation:
700 P.2d 1358 (1984)Facts
Century Park, Ltd. was a limited partnership formed to own a 62-unit apartment complex in Tucson. In 1982, the general partners were G & S Investments (51%) and Thomas Nordale (25.5%), with the remaining interest owned by limited partners. Beginning in 1979, Nordale began using cocaine, which caused significant personality changes. He became suspicious, stopped working regular hours, failed to return phone calls, and made threats to other partners. Living in the apartment complex, Nordale created disturbances, sexually solicited an underage tenant, and refused to pay rent on an apartment he was temporarily using. He irrationally insisted on converting the apartments to condominiums despite adverse tax consequences and high interest rates, and demanded rent increases despite previous vacancies. By 1981, the other partners concluded Nordale was incapable of making rational business decisions and sought dissolution. After filing the complaint, Nordale died in February 1982. The partnership agreement contained provisions allowing surviving partners to continue the business upon a partner’s death and a formula for buying out the deceased partner’s interest based on their capital account plus an average of prior years’ profits.
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