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partnership according to any arbitrary percentage of the profits
or losses of the entire partnership.
The third factor to consider is the partners’ interests in
cashflow and other nonliquidating distributions. In general,
Melvin and Russell agreed to allow each other to withdraw the
portion of proceeds generated by their respective activities.
The evidence in the record indicates that different bank accounts
were maintained for the two activities, with Melvin primarily in
charge of the oil and gas accounts and Russell primarily in
charge of the farm accounts. Russell testified that he wrote
checks on the BBP farm account as he needed the money, not as the
income was received by BBP. He further testified that although
he felt he was entitled to farm income, there was nothing that
prohibited Melvin from writing a check from the BBP farm account
and that if Melvin wanted money from the farming activity then
Russell would write him a check. Russell testified that Melvin
stated several times that he would take $200,000 a month out of
BBP. Russell believed that this amount was more than Russell
withdrew from the partnership. Additionally, Russell and Mr.
Feldmann both testified that over the life of the partnership,
Melvin probably withdrew more money from the partnership than
Russell did.18
18We note that, with respect to the grain sales made in
1994, Jean Ballantyne was listed as the payee for a $73,181.24
(continued...)
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