Friedman, the "O" Street Carpet Shop, Inc., and Langness formed a partnership known as NFL Associates. "O" Street Carpet's net contribution to capital was $5,004; Langness contributed $14,000 in cash; and Friedman contributed his legal services, on which no value was placed by the articles of partnership. The articles stated that Friedman was entitled to 10 percent of the profits and that Langness was to receive payments of $116.66 per month. The partnership's accountant treated the payments to Langness as a return of her capital. Years later, the partnership sold the rental property owned by the partnership, and the partnership was wound up. Friedman claimed that he was entitled to 10 percent of the partnership capital upon dissolution. Langness claimed that Friedman was not entitled to a capital distribution and that the monthly payments to her should not have been treated as a return of capital. Decide. [Langness v. "O" Street Carpet, Inc., 353 N.W.2d 709 (Neb.)]
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