Reference no: EM133200495 , Length: 5 pages

Question 1: Steve Holmes and his son Mike were partners in a construction business. Steve also owned a ranch, which he contributed to the partnership, even though Steve was still listed as the owner of record. Steve learned of a low-interest loan available for the purchase of property from a parent. Solely to obtain the benefits of the low-interest loan, Steve deeded the ranch to Mike. No money exchanged hands, however, and Mike never paid Steve or the partnership for the ranch. The transfer was not treated as a sale on Steve's or Mike's books, Mike did not claim ranch income as his own, and there were no changes in ranch operation. When Steve and Mike had disagreements, Steve asked a court to dissolve the partnership and to distribute its assets. Was the ranch an asset of the partnership or Mike?

Question 2: Demas Yan and Dong Fu made an agreement to build condominiums on Yan's land in the Chinatown section of San Francisco. Their agreement provided that Yan would own 75 percent and Fu 25 percent of the property. Yan was responsible for the initial $300,000 construction cost, and Fu the remainder. They agreed to share the proceeds of the sale or rental of the condominiums according to the ownership percentage. Fu, however, had sole power to decide whether to sell or to rent the property. Afterward, Fu assigned his interest under the agreement to Wei Suen. Thereafter, the condominiums were sold for a combined price of $2.3million. Was Suen entitled to a share of the condominium sale proceeds?

Question 3: Dennis Ranzau and William Brosseau formed a partnership to purchase the Casa T, a house in Acapulco. Their intent was to use the Casa T as a vacation home for a few weeks each year, to lease it for the remainder of each year, and to share the rental income after expenses. Ranzau soon became concerned that Brosseau was not accounting for the expenses and income of the Casa T. Brosseau refused Ranzau's requests to provide receipts for expenses Brosseau claimed to have incurred on the house. Brosseau also let his friend have "total run of the house" over Ranzau's objection. On another occasion, Ranzau's wife and her friends were locked out of the house by an agent of Brosseau and had to make other accommodation arrangements. Has Brosseau breached his fiduciary duty to Ranzau?

Question 4: Spector(S),Rosenberg (R),Patron (P), andKonover(K) agree to build a shopping plaza in Seymour, Connecticut. There is no written partnership agreement. The four orally form Tri Town Realty Co., a partnership in which each partner receives a 25 percent interest. S and R contribute a lease, while P and K are responsible for building, operating, and managing the shopping plaza. Initially K and P manage the shopping plaza themselves, charging the partnership for any out-of-pocket expenses they incur. Over time, K and P form K and P Management Company, which eventually is replaced by K Management Corporation, which manages Tri Town. K's duties in managing Tri Town include preparation and distribution of monthly reports to each of the partners. S believes that K's reports are not adequately explaining the finances of the partnership. S asks for an explanation of various expenses that appear on the monthly report. When S does not receive a response from K, S again reaches out to K and demands that the partnership be terminated. K never responds and stops making profit distributions to S. S hires a CPA, whose investigation reveals that K did not maintain any account dedicated solely to the Tri Town partnership. It is discovered that the Tri Town partnership funds were commingled with funds from several other K entities, and all the funds were commingled in one account called the K and R Associates Trust Fund (K and R). Not only were the funds commingled in one account, but the Tri Town funds were used by other properties owned by K. Even though Tri Town funds supposedly were kept in the K and R checking account, the balance of the entire K and R checking account was actually far less than the amount purported to be in the Tri Town partnership account. Additionally, the interest earned on Tri Town funds was not credited to Tri Town's account. K admits to diverting funds between his various entities. K said that by sharing the funds in the K and R account, K could use one property's funds to cover expenses incurred by another property. S sues K seeking damages stemming from K's alleged breaches of his fiduciary duties in managing the Tri Town partnership. Will the court find that K breached his fiduciary duties?

Attachment:- Case attachment.rar