Robertson v. Jacobs Cattle Co.

Appellants - four of the partners in the Jacobs Cattle Company partnership - sought dissolution and liquidation of the partnership. Appellees - the partnership and the remaining partners - filed a counterclaim seeking dissociation of Appellants instead of dissolution. The district court dissociated Appellants and ordered the partnership to buy out their interests. In a previous appeal, the Supreme Court held that judicial dissociation was proper but determined that the district court erred in calculating the proper distributions to buy out the dissociated partners. On remand, the district court determined that the profit from the hypothetical capital gain should be credited to the partners’ accounts in accordance with their capital percentages, rather than the income percentages. This resulted in a lower buyout distribution to the dissociated partners. The Supreme Court reversed, holding that the district court erred in calculating the distributions required for the buyout. Remanded. View "Robertson v. Jacobs Cattle Co." on Justia Law