Farnsworth v. Deaver
Court of Appeals of Texas, Amarillo
147 S.W.3d 662 (2004)
Johnny and Janie Farnsworth and John and Carol Deaver were partners without a written partnership agreement; the Farnsworths had contributed $22,080.68 in capital and the Deavers $34,394.41. After paying off other creditors upon the partnership's failure, no assets remained. A dispute over settling the partners' accounts went to trial, and the trial court ordered the Farnsworths to pay the Deavers $6,134.37, representing half the difference between the two capital accounts; the Farnsworths appealed.
Whether, at dissolution of a partnership without a written agreement, individual partners are ultimately responsible for repaying each other's capital contributions when the partnership's remaining assets are insufficient.