PARTNERSHIP--PARTNER'S RIGHT TO COMPENSATION FOR SERVICES TO PARTNERSHIP AS A GOING CONCERN

Authors

C. E. Lombardi, Jr., University of Michigan Law SchoolFollow

Abstract

Plaintiff and defendant bought a fishing boat, which they operated in partnership for a number of years, under an agreement embodied in a series of informal letters. Both plaintiff and defendant at times ran the boat, but apparently they never operated it together. The partner in charge received the customary share of the crew's two-thirds of the "catch," plus compensation for services rendered as captain; each of them received half of the ''boat's share" of the catch. Defendant bought materials for some special nets, which he designed and constructed; he informed. plaintiff that he was doing so, and that it would cost "quite a lot" and be "lots of work." Subsequently, without informing plaintiff, defendant took half of the boat's share of the catch as rent for the nets, on the theory that the purchase of materials and construction of the nets was not a transaction within the partnership agreement. In an action for accounting, defendant maintained that even if he were denied rent, he was entitled to compensation for the work he had done in designing and constructing the nets with no assistance whatever from plaintiff. Held, decision denying compensation to defendant affirmed. Waagen v. Gerde, (Wash. 1950) 219 P. (2d) 595.

Recommended Citation

C. E. Lombardi, Jr., PARTNERSHIP--PARTNER'S RIGHT TO COMPENSATION FOR SERVICES TO PARTNERSHIP AS A GOING CONCERN, 49 Mich. L. Rev. 905 (1951).
Available at: https://repository.law.umich.edu/mlr/vol49/iss6/40