Meinhard v. Salmon (N.Y. 1928) (Cardozo)
FACTS
In this case, one partner in a joint venture [Salmon] secretly entered into a new lease
related to their business before their old lease had expired. Other partner [Meinhard]
claimed that the new lease was property of the partnership.
The opportunity for the new lease came about as a result of the partnership enterprise.
Salmon should have disclosed the new opportunity to Meinhard, so the latter could
have competed for the new lease.
RULES
As the managing partner, Salmon owed a particular duty to his other partner.
ANALYSIS
Lessons from this case:
o Respond honestly to initial questions, or at least have a strategy for answering
the question (e.g., evasion, stonewalling)
o Write something into the partnership agreement concerning an exit strategy.
FACTS
In this case, one partner in a joint venture [Salmon] secretly entered into a new lease
related to their business before their old lease had expired. Other partner [Meinhard]
claimed that the new lease was property of the partnership.
The opportunity for the new lease came about as a result of the partnership enterprise.
Salmon should have disclosed the new opportunity to Meinhard, so the latter could
have competed for the new lease.
RULES
As the managing partner, Salmon owed a particular duty to his other partner.
ANALYSIS
Lessons from this case:
o Respond honestly to initial questions, or at least have a strategy for answering
the question (e.g., evasion, stonewalling)
o Write something into the partnership agreement concerning an exit strategy.
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