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Business Organizations Keyed to Macey
Meinhard v. Salmon
Citation:
164 N.E. 545 (1928)
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
On April, 1902, Louisa Gerry leased to the defendant Walter J. Salmon the premises known as the Hotel Bristol. The lease was for a term of 20 years. The lessee undertook to change the hotel building for use as shops and offices at a cost of $200,000. Salmon, while in course of treaty with the lessor as to the execution of the lease, was in course of treaty with Meinhard, the plaintiff, for the necessary funds. The result was a joint venture. Meinhard was to pay to Salmon half of the money requisite to reconstruct. Salmon was to pay 40 percent of the net profits to Meinhard. When the lease was near its end, Gerry had become the owner of the reversion. The lease between Gerry and the Midpoint Realty Company was signed and delivered. Salmon had not told Meinhard anything about it. When Meinhard learned of it, he demanded that the lease be held in trust as an asset of the venture. Salmon refused.
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