A Partnership/Joint Venture Requires an Agreement to Share in Losses

A Partnership/Joint Venture Requires an Agreement to Share in Losses

A recent decision from the Appellate Division of the New York Supreme Court concluded that no joint venture existed absent an agreement to share losses.  Maor v. Blu Sand International, Inc., 38 NYS3d 907 (Mem) (Supreme Court, App. Div., First Dept. Oct.20, 2016).

 

This being a memorandum opinion, the background facts are not set forth, so the nature of the underlying agreement between the plaintiff and the defendant is not clear.  Still, the Appellate Division determined that the defendant was entitled to summary judgment.  The claims for which summary judgment was granted include those for an accounting based on, apparently, the alleged joint venture/partnership.  As to the claim for an accounting, it was dismissed because the plaintiff it failed to show a necessary fiduciary between the parties.

As for the allegation that there existed a joint venture (partnership) between the plaintiff and the defendant, that allegation was rejected as there was no evidence proffered that the plaintiff had agreed to participate in the losses as well as the profits of the venture.