Hurwitz v. Padden

581 N.W.2d 359 (1998)

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Hurwitz v. Padden

Minnesota Court of Appeals
581 N.W.2d 359 (1998)

RW

Facts

Thomas Hurwitz (plaintiff) and Michael Padden (defendant) formed a two-person law-firm partnership, which they later reorganized as a limited-liability company. Hurwitz and Padden never had a written partnership or operating agreement, but they always split the firm’s proceeds on a 50-50 basis. Hurwitz and Padden subsequently decided to dissolve the firm. The partners managed to wind up most of the firm’s affairs, but they could not agree on how to divide prospective attorney fees from the firm’s ongoing contingency cases. Hurwitz successfully sued for a declaratory judgment that each partner was entitled to half of those contingency fees. On appeal to the Minnesota Court of Appeals, Padden contended that the trial court erred in applying partnership principles to the dissolution of a limited-liability company, and that the contingency fees should be allocated on the basis of quantum meruit.

Rule of Law

Issue

Holding and Reasoning (Short, J.)

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