Summers v. Dooley
94 Idaho 87, 481 P.2d 318 (Sup.Ct.1971)
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94 Idaho 87, 481 P.2d 318 (Sup.Ct.1971)
Facts:
Plaintiff entered into a partnership with Doodley (D) for the purposes of operation of a trash collection business.
-When one of the partners was unable to work, he had to provide a replacement.
-In July 1966, P approached D regarding the hiring of another man and the D refused. -Nevertheless, the P hired a person and paid him out of his pocket.
-Upon discovery of this action, D again voiced his objection.
-P continued to operate using the third man till 10/1967, then instituted this action.
-He claims that D owes him $6,000, for the $11,000 in expense incurred by hiring of another man.
Issue: If a partner incurs expenses for the partnership, over the other partners’ objection, must the partnership reimburse him for those expenses?
Holding:No. If a partner incurs expenses for the partnership, the partnership need not reimburse them unless those expenses were authorized by a majority of partners, absent contrary agreement or later ratification.
Rule: If a partner incurs expenses for the partnership, the partnership does not need to reimburse them unless those expenses were authorized by a majority of partners, absent contrary agreement or later ratification.
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