Agent

Real estate partners feud over dubious rental practice

Co-owner sues to ensure other principals play fairly
Published on Feb 1, 2006

In 1980, a general partnership known as 3-D acquired a house that had been converted into offices. Since 1981, most of the building has been rented to one of the partners, William Daniels, Esq. Eight years later, Daniels' client, Benny Enea, purchased a one-third interest in the 3-D general partnership from John P. Daniels. In 2001, Enea questioned William about the modest rent being paid for his offices. At this point, the relationship "began to unravel." Two years later, Enea disassociated himself from the partnership. He brought this lawsuit "to determine partner's buyout price and for damages." Purchase Bob Bruss reports online. Defendant 3-D (Claudia and William Daniels) argued they had no fiduciary duty as partners with Enea to pay fair market rent for the offices. They claimed there was no duty or obligation when a partner's conduct furthers the partner's own interest. If you were the judge would you rule a real estate general partner has a fiduciary duty to a fellow partner, s...

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