Analysis of a Court Decision on a Partnership Liquidation The Mattfield v. Kramer...

Analysis of a Court Decision on a Partnership Liquidation

The Mattfield v. Kramer Brothers court case presents a number of the interesting legal issues that often arise from the dissolution of a partnership. The case was heard in the Supreme Court of the State of Montana in 2005 and decided on May 31, 2005, as Case 03-796. The court’s decision includes a summary of the disputes and lower court decisions.

The Montana State Supreme Court’s decision is available at the FindLaw website. The easiest way to obtain the script of the decision is to search the Internet for the term “Mattfield v. Kramer Brothers” and then follow the link to the Court’s 2005 decision. The legal briefs that each side presented to the Supreme Court may be obtained at the State Law Library of Montana website by searching the Internet for “State of Montana Law Library” or, using the URL: http://courts.mt.gov/ library, click on Cases, and then search using case number 03-796, or a text term such as Mattfield. The briefs will then be made available.

Required

Obtain a copy of the Montana Supreme Court decision in the Mattfield v. Kramer Brothers case.

Then answer each of the following questions regarding it.

a. Prepare a short summary of the history of the Kramer Brothers Co-Partnership from formation through the appeal to the Montana Supreme Court.

b. What type of partnership agreement existed? Recommend several provisions that you feel should have been included in a formal, written partnership agreement.

c. When the case was appealed to the Supreme Court, did Bill Kramer still have an economic interest in the partnership? Explain.

d. What legal recourse did the other partners have when Don Kramer dissociated from the partnership in 1994?

e. In February 1997, why did Don Kramer’s attorney, Floyd Brower, request copies of Ray Kramer’s and Doug Kramer’s personal tax returns?

f. Select and discuss two key points regarding partnership liquidations that this case illustrates and that you feel are important.