partnership dissolution

Plaintiff, a 50/50 shareholder in two corporations, sued for involuntary dissolution and removal of the other director, alleging breach of fiduciary duty by mismanagement and use of corporate funds for personal expenses. Defendant cross-complained alleging that plaintiff’s false statements to a lender regarding defendant’s conduct caused the lender to refuse to reissue a line of credit without making modifications which were disadvantageous to the corporate borrowers.

Plaintiff attorney was a partner with five other attorneys in a law firm. Due to ongoing disagreements, he sought involuntary dissolution. There were disputes about how to divide the assets and liabilities, including the disposition of pending cases and fees which they had generated and alleged use of firm funds for personal use.