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Congel v. Malfitano

76 N.Y.S.3d 873 (2018)

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Congel v. Malfitano

New York Court of Appeals

76 N.Y.S.3d 873 (2018)

Facts

The defendant was a partner in a general partnership called the Poughkeepsie Galleria Company. The partnership agreement stated that the partnership could dissolve upon the election of the partners to dissolve the partnership. The agreement also stated that at least 51 percent of the partners must approve any action taken by the partnership. The defendant decided to withdraw from the partnership. He sent a letter to the other partners stating that he was electing to dissolve the partnership effective immediately. The rest of the partners believed that the defendant wrongfully terminated the partnership, and they continued to operate the business. The partnership’s executive committee sued the defendant for breach of the partnership agreement. The New York Supreme Court granted the plaintiffs summary judgment. The appellate court affirmed on the ground that the defendant’s unilateral dissolution violated New York partnership law. The New York Court of Appeals granted the defendant leave to appeal. The defendant argued that the partnership was a partnership at will.

Rule of Law

Issue

Holding and Reasoning (Fahey, J.)

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