a. Who started Lako?
b. Over the life of the partnership, who did the most work for Lako?
c. In fairness, should Charles be entitled to payment for his extra work?
d. Was there an agreement that the partnership would pay more to Charles?
Charles Hooper owned Lako, a scrap metal business, and invited his brother William to join him as partner. They were each entitled to 50 percent of the profits of the partnership, but they agreed that they would take out only what was necessary to live, and the remainder would stay in the business. The two brothers also agreed that Lako would hold and manage real estate and stocks they had inherited from their grandfather. These inherited holdings generated most of most of the partnership's income.
Ten years after forming the partnership, William was injured in a car accident. Although William never returned to the office, he did do some partnership work at home. William and Charles had a major disagreement over a settlement offer from an insurance company on a Lako building that had been destroyed by fire. William wanted to take the settlement but Charles wanted to hold out for more. Charles became so angry that he communicated with William only through his girlfriend, and refused to give William any information about the partnership.
William filed suit, asking the court to order an accounting and to dissolve the partnership. Charles alleged that he was entitled to payment for the services he performed for the partnership after William's accident. The lower court found for William and Charles appealed.