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Business Associations Keyed to Hwang, 3rd Ed.
Robertson v. Jacobs Cattle Co.
Citation:
285 Neb. 859 (2013)Facts
Jacobs Cattle Company was a family partnership formed in 1979 that owned approximately 1,525 acres of agricultural land in Valley County, Nebraska, valued at over $5 million by 2011. The partnership was governed by a June 19, 1997 partnership agreement that gave Ardith Jacobs, as trustee, general management authority subject to override by a vote of six partners. The six partners were Ardith (with two votes), Dennis Jacobs (with two votes), and four other family members including Patricia Robertson, James Robertson, Duane Jacobs, and Carolyn Jacobs (each with one vote). The partnership agreement allocated capital accounts based on original contributions and allocated net profits and losses proportionally to voting rights, giving each of the four appellant partners a 12.5 percent share of profits. Since 1997, the partnership had not returned a profit or made distributions. Beginning in 2004, partnership meetings ceased, and Ardith unilaterally terminated the partnership’s attorney and accountant. In 2005, Ardith, acting alone, sued Patricia and James for unpaid rent from 2003-2004, obtaining judgment against Patricia. The land previously leased to Patricia was then rented to Dennis. These actions created substantial acrimony among the partners, making it impracticable for them to continue in partnership together.
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