Drashner v. Sorenson

75 S.D.247, 63 N.W.2d 255 (1954)

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Nature of the Case

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Facts

P and Ds formed a partnership in a real estate, loan, and insurance business. For $7,500, they purchased a real estate and insurance agency. The money for the purchase was advanced by the Ds, but $3,000 of it was repaid by the partnership. On June 15, 1951, P commenced this action seeking an accounting, dissolution, and winding-up of the partnership. Ds' counterclaim prayed for the same relief. The court found that P violated the terms of said partnership agreement by demanding a larger share of the income of the said partnership than he was entitled to under the terms of said partnership agreement; that P was arrested for reckless driving and served a term in jail for said offense; that P demanded that Ds permit him to draw money for his own personal use out of the money held in escrow by the partnership; that P spent a large amount of time during business hours in the Brass Rail Bar in Rapid City, South Dakota, and other bars, and neglected his duties in connection with the business of the said partnership. Ds were entitled to continue the partnership and have the value of P's interest in the partnership business determined, conditioned upon the release of P from any liability arising out of the said partnership, and further conditioned upon the payment by Ds to P of the value of P's interest in the partnership. The value of the goodwill of the business was not to be considered. The court found value of the said partnership property to be equal to liabilities, so P got nothing. The court decreed 'that the plaintiff had no interest in the property of the said partnership,' and that the defendants were the sole owners thereof.