Michael wheeling entered partnership

Assignment Help Business Management

Reference no: EM133938339

Case Submission : Syzmanowski v. Brace, 987 A.2d 717 (Super. Ct. Pa. 2009). John Szymanowski and Michael Wheeling entered a partnership with Robert Brace and BCD Properties, Inc. The partnership, known as BSW, was to drill two gas wells in Erie County, Pennsylvania on leaseholds held by Brace. Their one-page agreement provided: BCD Properties, Inc. (owner Robert H. Brace) and Michael A. Wheeling and John Szymanowski have entered into an agreement on this 1st day of October, 2002, involving two new gas wells being drilled. The two new gas wells, Dougherty #1, and Danylko #1 are located in McKean Twp. Each of the two parties entering this agreement with BCD
Properties, Michael A. Wheeling and John Szymanowski, have agreed to purchase into a portion of the wells at $15,000 per well, each, making a total of $30,000 received from each contributor. This amount will be due BCD Properties at the signing of this contract. This total will account for 10% from each contributor per well. Each contributor will then receive 10% net profit after royalties, well tending fees, and operating expenses are deducted from the wells production each month. The Gas Well Agreement did not make any express or implied reference to any other oil and gas ventures on the Danylko or Doughterty leases or elsewhere or any other kind of undertaking.

The parties did discuss the possibility of additional gas well projects or ventures but no commitments of any kind were made. Dougherty #1 and Danylko #1 production peaked in October 2003 and began a steady decline thereafter until it ceased and the wells were disconnected in February 2005. In April 2004, BCD drilled the two additional wells, Danylko #2 and Danylko #4, each on the same Danylko leasehold and approximately 1,100 to 1,200 feet from Danylko #1, and each modestly successful. Szymanowski and Wheeling contend that the partnership either owned the Danylko #2 and Danylko #4 gas wells or that Brace and BCD breached a fiduciary duty by drilling the wells and claiming profits from the new wells for Brace and BCD.

T/F

1. John Szymanowski, Michael Wheeling, Robert Brace and BCD Properties, Inc. formed the partnership known as BSW as a partnership for a term, not a partnership at will.

2. BDC Properties, Inc. did not breach its fiduciary duties to Szymanowski and Wheeling by opening and operating the Danylko #2 and Danylko #4 gas wells, even though they competed against the Danylko #1 and Dougherty #1 wells.

3. Szymanowski, Wheeling, and Brace are entitled to compensation in the form of salary for their work on behalf of the partnership, and each partner is entitled to participate in the management decisions of the partnership.

4. Both Szymanowski and Wheeling are entitled to 10% of the profits of the BSW partnership, but do not assets of the BSW partnership.

5. Brace's development of Danylko #3 and #4 wells usurped a partnership opportunity that should have been offered to Szymanowski and Wheeling.

Reference no: EM133938339

Questions Cloud

What the three paths are and general structure of sessions : Provide a brief explanation for when to use Discernment Counseling, the goal of the approach, what the 3 paths are, and the general structure of sessions.

What are some of the methods you have used in the past : There are numerous ways to increase familiarity. What are some of the methods you have used in the past (or that you know of and would like to try)?

Do you think this could affect research done : Given what you've learned about problems with replication in field of psychology do you think this could affect research done within holistic animal care field?

Consider the impact of patient involvement : Share your experiences and consider the impact of patient involvement

Michael wheeling entered partnership : John Szymanowski and Michael Wheeling entered a partnership with Robert Brace and BCD Properties, Inc.

Calculate the income projected from each payer source : Apply the principles of economics as they relate to nursing and healthcare and Calculate the income projected from each payer source and total for the year

What kind of healthcare does the philippines have : What kind of healthcare does the Philippines have?

Develop a positive and collaborative culture : Identify TWO core values you would want to ensure become enacted values within your team in order to develop a positive and collaborative culture.

Successful businessman has approached you for some advice : You are a partner at a CPA firm, and Scott is a very successful businessman has approached you for some advice.

User Account

All Pages