Meinhard v. Salmon
Court of Appeals of New York
249 N.Y. 458, 164 N.E. 545 (1928)
Salmon (defendant) executed a 20-year lease (Bristol Lease) for the Bristol Hotel which he intended to convert into a retail building. Concurrent with his execution of the Bristol Lease, Salmon formed a joint venture with Meinhard (plaintiff). The joint venture’s terms provided that Meinhard would pay Salmon half the amount required to manage and operate the property, and Salmon would pay Meinhard 40 percent of the net profits for the first five years, and 50 percent thereafter. Both parties agreed to bear any losses equally. The joint venture lost money during the early years, but eventually became very profitable. During the course of the Bristol Lease another lessor acquired rights to it. The new lessor, who also owned tracts of nearby property, wanted to lease all of that land to someone who would raze the existing buildings and construct new ones. When the Bristol Lease had four months remaining, the new lessor approached Salmon about the plan. Salmon executed a 20-year lease (Midpoint Lease) for all of new lessor’s property through Salmon’s company, the Midpoint Realty Company. Salmon did not inform Meinhard about the transaction. Approximately one month after the Midpoint Lease was executed, Meinhard found out about Salmon’s Midpoint Lease, and demanded that it be held in trust as an asset of the joint venture. Salmon refused, and Meinhard filed suit. The referee entered judgment for Meinhard, giving Meinhard a 25 percent interest in the Midpoint Lease. On appeal, the appellate division affirmed, and upped Meinhard’s interest in the Midpoint Lease to 50%.
Rule of Law
Holding and Reasoning (Cardozo, C.J.)
Dissent (Andrews, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 724,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.