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Brooke v. Mt. Hood Meadows, Oreg., Ltd.

725 P.2d 925, 81 Or. App. 387 (1986)

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Brooke v. Mt. Hood Meadows, Oreg., Ltd.

Oregon Court of Appeals

725 P.2d 925, 81 Or. App. 387 (1986)

Facts

Mt. Hood Meadows, Oreg., Ltd. (Mt. Hood) (defendant) was a limited partnership established for the construction and operation of a winter-sports development in the Mt. Hood National Forest. Mt. Hood’s general partner, which was Mt. Hood Meadows Development Corp. (Meadows), and the board of directors voted to distribute only 50 percent of the limited partners’ taxable profits, with the remainder reinvested in the business. The partnership agreement provided that all management decisions were to be made by Meadows and that the limited partners had no right to take part in the control of the business. Three limited partners (plaintiffs) brought suit against Mt. Hood and Meadows for the undistributed profits. After a trial on the merits, the trial court held that Meadows had no authority to retain profits and ordered Meadows to distribute annually to all limited partners cash equal to the allocated profits. The trial court denied Mt. Hood and Meadows’ motion for judgment on the pleadings. The trial court awarded judgment to the three limited partners. Mt. Hood and Meadows appealed, arguing that the trial court erred in denying the motion for judgment on the pleadings.

Rule of Law

Issue

Holding and Reasoning (Buttler, J.)

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