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Kovacik v. Reed
Supreme Court of California
49 Cal.2d 166, 315 P.2d 314 (1957)
Kovacik (plaintiff) and Reed (defendant) entered into a partnership to remodel kitchens. Kovacik would contribute funds to the enterprise in the amount of $10,000. Reed would contribute labor and skill, acting as an estimator and superintendent of the projects without compensation. The partners did not discuss the apportionment of losses. While the two received some jobs, they lost money. Kovacik asked Reed to contribute money to cover half of the total losses. Reed refused, and Kovacik filed this lawsuit. The lower court held that the partners had agreed to share profits and losses equally, and Reed was thus liable for half the shortfall.
Rule of Law
Holding and Reasoning (Schauer, J )
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