Enea v. Superior Court
Court of Appeal of California
34 Cal.Rptr.3d 513 (2005)
Relevant factsFree
Enea (plaintiff) sued his former partners, William and Claudia Daniels (defendants), for renting the partnership's sole asset, an office building, to themselves at below-market rent; the trial court granted the Daniels summary judgment, reasoning California law permitted such conduct absent a contract requiring market-rate rent, and that the partnership's main purpose was to hold the property for eventual sale rather than to collect rental income.
IssueFree
Whether partners may rent partnership property to themselves at less than the fair market rental value.