Summers v. Dooley - Lecture notes 13 PDF

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Case Brief and Notes for Business Organizations I...

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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

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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

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1966 Π approached Δ regarding hiring another employee, Δ refused

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Summers hired a man and paid him out of his own pocket

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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...