Ziemann v. Grosz
10 N.W.3d 801 (2024)
Facts
D and her husband operated a wrecking and salvage business. They lived in a home located on the same property as the business. P, who is D's grandson, became involved in the operation after her husband died. P moved into the home in 2014, but D continued to own the property. In 2022, D sought to evict P after he refused to purchase the home. P sued D, alleging they entered into an oral partnership agreement. P sought a declaration that a partnership existed and brought claims for accounting and dissolution of the partnership, breach of fiduciary duties, and tortious interference with a business relationship. D filed an answer denying the existence of a partnership and pleaded a counterclaim for trespass. The parties presented conflicting evidence concerning their business arrangement. D testified she agreed to pay P a commission for selling her wrecking inventory. P testified that D agreed to give him an ownership interest in the business and a share of proceeds from what they sold. The district court found that the parties orally agreed to form a partnership. The terms included a 70/30 split of existing inventory minus the items that were specifically exempted from the agreement by D. P was to receive 100% of the proceeds of sales from newly acquired inventory. P was permitted to reside in the home located on the property owned by D. P was responsible for most of the business expenses associated with the day-to-day business operations of Grosz Wrecking outside of the property taxes and expenses paid by D.' D 'agreed to give P a 70% ownership stake in Grosz Wrecking.' The court ordered an accounting and dissolution of the partnership. The court dismissed D's trespass claim, reasoning that P's occupancy of the property was part of the parties' partnership agreement. The court ordered that he 'will be permitted to continue living on the property until the business is dissolved.' The court entered judgment requiring the partnership assets to be liquidated and 'any surplus' to be distributed 70% to P and 30% to D. Both parties appealed.
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