This dispute is derived from the negotiation of a settlement after a judgment was obtained in a

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This dispute is derived from the negotiation of a settlement after a judgment was obtained in a 1992 trial in Llano County, Texas, against Queen Isabella Development Joint Venture, Robert Buck, and G.J. Palmer, the latter two holding interests in Queen Isabella at the time of the trial. On April 19, 1996, Ramon Garcia, the attorney for Queen Isabella, Buck, and Palmer, sued Palmer and later added Buck to the lawsuit for unpaid legal fees. 

On July 22, 1997, Palmer filed a cross-claim against Buck, alleging that Buck had promised Palmer that if Palmer could arrange for a complete release of liability for Buck for the joint venture’s indebtedness, Buck would transfer his interest in Queen Isabella to Palmer. Palmer further alleged that in 1995, Buck had expressed that he had no desire to continue the joint venture and after the Llano County trial was settled, Buck refused to transfer his interest in Queen Isabella to Palmer. 

Buck denied that he had entered into an oral contract with Palmer and filed his own crossclaim against Palmer. Among the claims that Buck asserted in his cross-claim, Buck asserted that Palmer had breached the partnership agreement and breached his fiduciary duty to Queen Isabella and to Buck. Palmer filed a motion for summary judgment, arguing that because Buck had previously expressed desire to dissolve the partnership, the partnership was indeed dissolved. Furthermore, because there was no evidence that Buck had any interest in the partnership after dissolution, Buck was not entitled to prevail on his claims. The trial court granted Palmer summary judgment and Buck appealed. 

What element of dissolution of a partnership does this case hinge on? What important question does the Texas Supreme Court answer in its opinion? How does the Texas Supreme Court answer this question and what arguments does it make in support of its answer?

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Dynamic Business Law

ISBN: 9781260247893

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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