Summers v. Dooley - Lecture Notes - Edubirdie

University:
California State University, Northridge
Course:
BLAW 280 | Business Law I
Academic year:

2022
Views:

341

Pages:

2
Author:

kundgetanufv

SUMMERS v. DOOLEY 94 Idaho 87, 481 P.2d 318 (1971) FACTS: Parties: Appellant: Summers (Π) Appellee: Dooley (Δ) Procedural History:   Trial judge ruled in favor of Π for partial recovery Π appealed Relevant Facts:       Π and Δ entered into a partnership agreement When either partner couldn’t work the non working partner would pay for a replacement 1962, Δ became unable to work and at his own expense hired an employee to take his place 1966 Π approached Δ regarding hiring another employee, Δ refused Summers hired a man and paid him out of his own pocket Δ refused to pay new employee out of partnership fund ISSUE:  Whether a partner who hires an employee against the wishes of the other partner can hold the non hiring partner liable for the employee’s salary PARTIES’ ARGUMENTS: Plaintiff:   Non-consenting partner retained profits produced by the additional labor By the Δ’s behavior he ratified the hiring of a new employee Defendant:  DISPOSITION OF THE COURT:  RULE OF LAW:  Any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the partners HOLDING:  A partner who is not in the majority that makes a business decision of ordinary matters does not hold the partnership liable for expenses incurred COURT’S REASONING:   Business differences must be decided by a majority of the partners provided no other agreement between the partners speaks to the issues Δ continually voiced objects and did not sit idly by

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