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Business Organizations Keyed to Sjostrom
Meinhard v. Salmon
Citation:
164 N.E. 545 (N.Y. 1928)ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
On April 10, 1902, Louisa M. Gerry leased to the defendant Walter J. Salmon the premises known as the Hotel Bristol in the city of New York. Salmon, while in course of treaty with the lessor, 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 moneys requisite to reconstruct, manage, and operate the property. Salmon was to pay to Meinhard 40 percent of the net profits for the first five years of the lease and 50 percent for the years thereafter. When the lease was near its end, Elbridge T. Gerry had become the owner of the reversion. In January, 1922, he approached the defendant Salmon. The result was a new lease to the Midpoint Realty company, which is owned and controlled by Salmon. The lease between Gerry and the Midpoint Realty Company was signed and delivered. Salmon had not told Meinhard anything about it. When he later discovered, he made demand on the defendants that the lease be held in trust as an asset of the venture. The demand was followed by refusal.
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Topic Resources
Topic Outline
Partnership Rights and RelationshipsTopic Refresher Course
Breach: Major and MinorTopic Charts & Notes
Parties Chart