Corrales v. Corrales

198 Cal. App. 4th 221 (2011)

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Corrales v. Corrales

California Court of Appeal
198 Cal. App. 4th 221 (2011)

Facts

Rudy Corrales (plaintiff) and Richard Corrales (defendant) were brothers who formed RC Electronics (RCE), a computer-tape-drive-repair business, pursuant to a written partnership agreement. Rudy subsequently discovered that Richard had formed a competing business similar to RCE. Richard sent Rudy a notice of dissociation, stating that Richard was withdrawing from the two-person partnership. Rudy and Richard sued each other for damages. Richard claimed that Rudy breached the fiduciary duty of loyalty as a partner of RCE. The trial court ruled in favor of Rudy and accepted Rudy’s expert’s valuation of Richard’s interest in RCE for the purpose of determining the buyout amount that Rudy owed to Richard. The trial court also found that, although Rudy concealed the competing business from Richard, Richard did not sustain any damages. Richard appealed.

Rule of Law

Issue

Holding and Reasoning (Bedsworth, J.)

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