Baltrusch v. Baltrusch, 83 P.3d 256 (Mont. 2004)

Facts

The Baltrusches are brothers who formed a business, which expanded into several other businesses.  They had acquired leases, which Otto’s sons helped farm.  When the leases became economically disadvantageous, he offered the leases to his sons.  The sons needed a tractor, which they acquired from Baltrusches partnership in exchange for paying labor wages.  The Baltrusch partnership broke up and litigation ensued for distribution of the property.

Procedural History

The District Court decided that all property owned jointly be sold, with the proceeds divided equally.

Issue(s)

Did the District Court err in not finding Otto liable for (1) his conversion of partnership equipment, (2) his failure to charge rent for the equipment, and (3) personal credit card expenses for which the partnership paid?

Holding(s)

No.

Reasoning/Analysis

The Court found that Otto did not breach his duty of loyalty, as his duty was to account to the partnership for any property or benefit he received, and he did just that.  The sons paid for the tractor by paying the wages of Otto’s hired hand.  As to the credit card, William had ample time to inspect the credit card invoices and we conclude the District Court did not err in finding random sampling insufficient to charge Otto for all of the years of credit card expenses.

Judgment/Outcome

The Court affirmed the judgment of the District Court.