Della Ratta v. Dixon

422 A.2d 409, 47 Md. App. 270, 1980 Md. App. LEXIS 394
CourtCourt of Special Appeals of Maryland
DecidedNovember 14, 1980
Docket281, September Term, 1980
StatusPublished
Cited by20 cases

This text of 422 A.2d 409 (Della Ratta v. Dixon) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Della Ratta v. Dixon, 422 A.2d 409, 47 Md. App. 270, 1980 Md. App. LEXIS 394 (Md. Ct. App. 1980).

Opinion

*271 Wilner, J.,

delivered the opinion of the Court.

On September 18, 1973, Joseph Della Ratta (appellant), William Dixon, Thomas Baldwin, and John Dixon (appellees) entered into a written agreement creating a general partnership known as OTC Associates. William Dixon, Baldwin, and Della Ratta were each to have a 30% interest in the company; John Dixon was to have the remaining 10%.

The purpose of the venture was to acquire and develop certain property in the Odenton Town Center, in Anne Arundel County. In furtherance of that aim, OTC, in fact, purchased certain real estate, borrowed $2,000,000 from Maryland National Realty Investors, Inc. (MNRI) to pay for it, and mortgaged the property to MNRI as security for the loan. The mortgage called for monthly amortization payments.

The pertinent parts of the partnership agreement, in terms of this case, are found in paragraphs 5, 4, 8, and 9. Paragraph 5 merely set out the percentages noted above, according to which the profits would be divided.

Paragraph 4 dealt with capital contributions. It provided, among other things, that:

(1) Each partner agreed "to contribute a percentage of all capital deemed to be necessary to the operation of the partnership business,” in accordance with the percentages set forth in paragraph 5.

(2) Each partner "shall be responsible for contributing his respective percentage of any additional capital that may be deemed to be necessary to the operation of the partnership business within ten (10) days after receipt of notice of such additional capital requirement.” (Emphasis supplied.)

(3) If a partner failed to contribute his respective share of additional capital contribution within the 10-day period, he "shall be in default.”

(4) In the event of a default, the defaulting partner’s interest could be purchased by any of the other partners at *272 a price fixed by the agreement. In the absence of such a purchase, however, the agreement provided that "any and all additional capital contributions then due shall be due and payable and the partnership shall be entitled to collect from the defaulting partner by legal process the entire amount of all additional capital contribution or contributions then due” together with interest at 8%, court costs, and reasonable attorney’s fees incident to the collection. (Emphasis supplied.)

Paragraph 8 provided that the "death, insanity, or withdrawal” of a partner shall "work an immediate dissolution of the partnership; however, the dissolution of the partnership shall not terminate the partnership but the partnership shall continue until the winding up of the partnership affairs is completed and the liquidating of the partnership assets as provided for hereinafter is completed.”

Finally, paragraph 9 dealt with termination. It provided that:

(1) Any partner may terminate the partnership prior to the end of the stated term [September 18,1999] by giving 30 days notice of his intention to so terminate the partnership; and

(2) "In the event of a termination pursuant to this paragraph, or in the event of death, insanity or withdrawal of a partner, the remaining partners shall wind up the partnership affairs and liquidate the partnership assets” either by selling the assets and distributing the proceeds or by distributing the assets in kind.

No specific time limit was set on the winding-up and liquidation process.

On November 8, 1977, the partners amended the basic agreement to provide that,

(1) No requirement shall be made of any of the partners for capital contributions "for any purpose other than debt service on obligations secured by liens against the property of this Partnership and real estate taxes thereon unless and until each of the partners shall otherwise agree.”

*273 (2) For the period ending December 31, 1978, not more than $50,000 may be expended for partnership purposes in excess of requirements for debt service and real estate taxes without the further approval of the individual partners, and "[n]o partner shall be liable for additional capital contributions through the period ending December 31,1978, for any purpose other than for his proportionate share of debt service and real estate taxes as aforesaid and of said sum of $50,000.00.”

(3) The books of the partnership "shall be restated” to provide that all sums theretofore advanced by the partners "shall be designated as capital contributions....”

(4) The partners "will make such additional capital contributions to the Partnership, not later than December 31, 1977, as shall be required to bring the total restated paid-in capital of the Partnership to $135,000.00.”

The amendment made no reference to any period beyond December 31, 1978.

On November 7, 1978, appellant wrote to his co-partners William Dixon and Thomas Baldwin (but not to John Dixon) a letter "under the terms of Paragraph 9 of the Partnership Agreement... providing you with thirty (30) days written notice that it is my desire and intention to terminate the Partnership.” The letter concluded, "You gentlemen, as remaining Partners, have the option to liquidate the Partnership assets by following either of the procedures stated in Paragraph 9 (a) or Paragraph 9 (b).” 1

Notwithstanding this letter, appellant continued to contribute, in monthly amounts of $3,307.50, his percentage share of the additional capital needed to defray the debt service requirements of the partnership. This ceased, however, in May, 1979; no further contributions were made by appellant thereafter, either with respect to debt service or other expenses of the partnership, and, whether *274 coincidentally or not, no payments on the mortgage were made in June or July, 1979. On July 19, 1979, MNRI declared a default on the loan and demanded immediate payment of the accelerated principal and accrued interest.

Appellant commenced this action on June 11, 1979, with a bill of complaint in the Circuit Court for Anne Arundel County seeking an order declaring a dissolution of the partnership, ordering an accounting, winding-up, and termination of the partnership, appointing appellant to conduct the winding-up and termination, and restraining appellees from interfering with the partnership property or with appellant in his winding-up and termination of the partnership.

Appellees answered the bill, asserting that they had actively sought buyers for the partnership property in an effort to wind up the partnership, but had been unsuccessful. They also filed a counterclaim seeking multiple forms of relief. They referred to appellant’s obligation under the 1977 amendment to contribute a 30% share toward the restated capital of $135,000, and alleged a deficiency on his part of $6,909.16. 2 They also noted his obligation to contribute toward not more than $50,000 of the general expenses of the partnership for the period ending December 31, 1978, and alleged his failure to make that contribution.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re: Ferndale Volunteer Fire Dept.
Court of Special Appeals of Maryland, 2026
Adelakun v. Adelakun
Court of Appeals of Maryland, 2025
Saunders v. Gilman
Court of Appeals of Maryland, 2025
In re: I.Q.
Court of Special Appeals of Maryland, 2025
Adelakun v. Adelakun
Court of Special Appeals of Maryland, 2024
Frase v. Barnhart
840 A.2d 114 (Court of Appeals of Maryland, 2003)
Knott v. Knott
806 A.2d 768 (Court of Special Appeals of Maryland, 2002)
Allfirst Bank v. Department of Health & Mental Hygiene
780 A.2d 440 (Court of Special Appeals of Maryland, 2001)
Eubanks v. First Mount Vernon Industrial Loan Assoc., Inc.
726 A.2d 837 (Court of Special Appeals of Maryland, 1999)
Stuples v. Baltimore City Police Department
704 A.2d 518 (Court of Special Appeals of Maryland, 1998)
General Motors Corp. v. Koscielski
564 A.2d 114 (Court of Special Appeals of Maryland, 1989)
Planning Board v. Mortimer
530 A.2d 1237 (Court of Appeals of Maryland, 1987)
Parker v. Robins
514 A.2d 1237 (Court of Special Appeals of Maryland, 1986)
Morgan v. Morgan
510 A.2d 264 (Court of Special Appeals of Maryland, 1986)
Mitchell v. Mitchell
487 A.2d 680 (Court of Special Appeals of Maryland, 1985)
Simmons v. Perkins
486 A.2d 1192 (Court of Appeals of Maryland, 1985)
Wall v. Heller
486 A.2d 764 (Court of Special Appeals of Maryland, 1985)
Howard County v. Eberhart
473 A.2d 509 (Court of Special Appeals of Maryland, 1984)
Mayfield v. State
468 A.2d 400 (Court of Special Appeals of Maryland, 1983)
Anthony Plumbing of Maryland, Inc. v. Attorney General
467 A.2d 504 (Court of Appeals of Maryland, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
422 A.2d 409, 47 Md. App. 270, 1980 Md. App. LEXIS 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/della-ratta-v-dixon-mdctspecapp-1980.