The Nitty-Gritty of Partnership Dissolution

The Nitty-Gritty of Partnership Dissolution

        A recent decision from Connecticut highlights the nitty-gritty, as well as the problems that come about from imprecise agreements, of a partnership dissolution.  Estate of Richard L. Goldblatt v. Cuselias, 2013 WL 4056528 (Conn. Super. July 25, 2013). 

       This decision sets forth the resolution of accounts upon the dissolution of a partnership.  The partnership at issue extended over only two and one-half years, ending in December 2003.  The complaint was not filed until 2005,  and shortly thereafter the plaintiff attorney passed away; the suit was continued by his estate.  Trial did not take place until 2010.

      The primary value of this decision would appear to be its explanation of the laborious task that is involved in recreating accounting records after the fact and the application of an dissolution agreement that was less precise than it might have been, especially in that it did not require each of the partners to promptly remit funds and account for actions with respect to individual files.  Ultimately, the judgment against the defendant was relatively nominal; it is clear that a significant expense was incurred in order to recreate the accounting records.  A carefully written agreement might have avoided this and similar problems.  In addition, that agreement should be drafted by independent counsel – as goes the adage “The lawyer who represents himself has a fool for a client.”