Estate of James R. Tobias, Deceased, V. Pauline Tobias, Executrix, and Verna P. Tobias, Surviving Spouse - Page 26




                                       - 26 -                                         
             contribution as provided by the act."  In discussing the                 
             partners' rights in the partnership, the 1992 State court                
             opinion focuses on the fact that James had made                          
             disproportionately greater capital contributions and on                  
             the inequity of dividing partnership profits equally before              
             he was repaid.  The 1992 State court opinion states the                  
             following:                                                               

                       Under the partnership act above [referring                     
                  to 15 Pa. Cons. Stat. � 8331] each partner is                       
                  repaid his contribution whether by way of capital                   
                  or advances to the partnership property.  The                       
                  court found that James' contribution [sic] far                      
                  exceeded contributions made by Darwin.  Hence it                    
                  appears that an inequity would be visited on                        
                  James if the partners share equally in profit,                      
                  however the provision allowing repayment of                         
                  advances to the partnership will level the                          
                  playing field.                                                      
                            *   *   *   *   *   *   *                                 
                       After each partner is compensated for his                      
                  contribution, ie, capital advancement or property                   
                  to the partnership distribution of profits on an                    
                  equal basis would seem equitable.  [Tobias v.                       
                  Tobias, No. 4583 (Ct. C.P. Dauphin County, Pa.                      
                  July 7, 1992).]                                                     

                  The 1997 State court opinion summarizes Pennsylvania                
             law as "holding that the repayment of capital investments                
             before distribution of any profits is an essential element               
             of every partnerships agreement implied as a term of law."               
             The 1997 State court opinion effects the 1992 State court                
             opinion by determining the partnership's assets and                      





Page:  Previous  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Next

Last modified: May 25, 2011