Question

Rocco and Knuckles operate a general partnership providing personal security. One day, at their business offices, Knuckles gets a call from Frankie Firestarter asking if he and Rocco would be interested in expanding into the fire protection business. Knuckles tells Frankie that he is interested, but that he doesn't want Rocco to be involved in this new business. Eventually Rocco discovers Knuckles' new business venture with Frankie Firestarter and sues for breach of fiduciary duty. You are the judge hearing the case of Rocco v. Knuckles; draft a ruling stating which party wins and why.

Answer 1

Rocco and Knuckles operate a general partnership providing personal security. As we know general partnership is a type of partnership in which two or more persons agree to share all assets, profits and liabilities of a business, a single partner can't involve in other business without informing his business partner. In our case, Knuckles interested in a new business with Frankie without informing Rocco which means backstabbing Rocco. When Rocco finds out Knuckle's new business, he takes legal action against Knuckles for breach of fiduciary duty.

Rocco is right, he should approach the court for legal proceedings against Knuckles as he breaks the trust and confidence of Rocco in partnership business. Rocco will win as he is right in his place and does not break any rules of partnership business. Knuckles need to pay Rocco for the breach of fiduciary duty.