Vigneau v. Storch Engineers

Facts

Defendant Storch Engineers is a consulting engineering firm, operating as a partnership. Plaintiff was hired by defendant as an architect for its Hartford office in 1980 and became a partner in 1983. Plaintiff funded additional partnership points by executing promissory notes in favor of Herbert Storch, the managing partner. In 1983, Joseph Merluzzo, head of defendants’ Connecticut operations, recruited plaintiff to invest with him in a real estate development partnership known of Highview Condominium Associates (HCA) to build condominiums. Merluzzo became the manager partner of HCA and plaintiff a general partner with a 22% interest. The arrangement was kept secret from Storch. HCA hired Storch to do the architectural work. In 1984 Merluzzo initiated another real estate partnership, called Grandford Associates. Merluzzo and plaintiff negotiated secretly with themselves to establish the fees Storch was to charge Grandford for Storch’s services. Grandford, however, suffered reverses and was unable to pay Storch’s bills. Merluzzo resigned from Storch in July 1986 when his participation in Grandford was discovered by Storch. Plaintiff promised Storch to divest himself of his entire interest in Grandford, but could find no takers. Plaintiff sues to recover the value of his partnership interest.