Skolny v. Richter

132 A.D. 680, 117 N.Y.S. 297, 1909 N.Y. App. Div. LEXIS 1574
Appellate Division of the Supreme Court of the State of New York·Decided June 4, 1909·Published·Cited by 4 cases

Opinion

Laughlin, J.:

The action is brought for the dissolution of a limited copartnership, formed by the plaintiffs and the defendant under the firm name of “Joseph Skolny & Company,” for the manufacture .and sale of clothing, on the 10th day of February, 1906, and for an accounting. By the copartnership articles the defendant became a special partner and contributed $80,000 capital, and the copartnership was to continue until the 1st day of December, 1911. The grounds alleged in the complaint for the dissolution of the copartnership prior to the expiration of its term, are that during the latter part of November or the fore part of December, 1908, the defendant secretly entered -into an agreement with one Remington, the chief salesman, and one Sinclair, the credit nian and confidential bookkeeper of the firm, who had become thoroughly familiar with its business, to form a limited copartnership with them to carry- on the same line of business in the same locality, the defendant to become a special partner and to invest $25,000 capital, and that he secretly sought to entice and induce from the firm, to become employees of' the new firm, its designer of ‘ patterns, its head cutter and the head of its trimming department, and thus to disrupt the business of the firm, and that the firm was compelled to increase the salaries of said employees at an additional annual expense of over $3,000 in order to retain their services; that thereafter and on or about the 5th day of January, 1909, the defendant entered into a limited copartnership on the terms aforesaid with said named employees of the plaintiffs’ firm under the firm name of “L. E. Remington & Co.,” to. continue for the period of twenty years; that the new firm entered upon competing business with the old firm in the same locality and is competing for the business, trade and custom of the old firm; that this will necessarily impair its business [682] and diminish its earnings and profits ; that these matters constitute a breach of the copartnership agreement and entitle the plaintiff to a dissolution thereof -and also to an accounting provided the court decides that the defendant is entitled to a share of the profits. The defendant admits, by not putting in issue, the allegations of the complaint to the effect that he formed a new limited copartnership for the purpose of carrying on similar business to that conducted by the firm of Joseph Skolny & Co., and as a special partner contributed $25,000 capital. 'The defendant, by his answer, puts in issue the other material allegations of the complaint, excepting those relating to the formation of the copartnership between him and the plaintiffs and the connection of Remington and Sinclair with the firm of Joseph Skolny & Co.; and then for a further separate defense alleges, in substance, that Sinclair and Remington had of their own accord determined to leave the employ of Joseph Skolny & Co., and that he became a special partner with them with the knowledge, acquiescence and consent of the plaintiffs, and that he took no part in the conduct of the business of Joseph Skolny & Co. or in the business of L. B. Remington & Co., and was unfamiliar with the practical management of the affairs of either firm, and he claims, in addition to interest on his money in each firm, an interest in the profits.

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Skolny v. Richter, 132 A.D. 680, 117 N.Y.S. 297, 1909 N.Y. App. Div. LEXIS 1574 (N.Y. Ct. App. 1909).

132 A.D. 680 (Skolny v. Richter) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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