Harbor Cove Marina Partners Partnership, Robert A. Collins, A Partner Other Than The Tax Matters Partner - Page 1

                                   123 T.C. No. 4                                     

                               UNITED STATES TAX COURT                                

               HARBOR COVE MARINA PARTNERS PARTNERSHIP,                               
               ROBERT A. COLLINS, A PARTNER OTHER THAN THE TAX                        
               MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL                
               REVENUE, Respondent                                                    

               Docket No. 13267-02.              Filed July 15, 2004.                 

                    H is a general partnership, its managing partner                  
               is S, and its other two partners are M and P.  H’s                     
               business activity is primarily the operation of a                      
               marina in San Diego, California.  On account of                        
               dissension that consistently occurred between S and P                  
               as to H’s operation of the marina, S, in its capacity                  
               as H’s managing partner, dissolved H, distributed the                  
               marina to S or to an S affiliate, distributed to P a                   
               check in the amount of the value of P’s interest in H                  
               as ascertained using a $16.5 million appraised value                   
               for the marina, and reported to R that H had                           
               terminated.  S’s actions, all of which occurred in                     
               1998, violated H’s partnership agreement which required                
               that H’s managing partner sell the marina publicly to                  
               the highest bidder in the event of a dissolution and                   
               that the proceeds of the sale be distributed to the                    
               partners in accordance with the interests stated in the                
               agreement.  P disavowed that H had terminated, sued S                  

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