Legal Updates

The partner managing the partnership accounts has the burden of proof to show that the accounts are true and correct

June 26, 2016
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Two companies entered into a joint venture with one of them managing the project and setting off amounts from the sum to be paid to the other.  The other moved the Court to order that accounts be given and following this to receive half of the projects proceeds other than amounts specifically agreed to be set off.

The Court held that a partner managing the accounts of the partnership owes a fiduciary duty to the other partners and has the burden of proof to show that the accounts are true and correct, even if such partner is the defendant in a claim.  Nevertheless, the Court reviewed the accounts presented and held that the claim should be rejected