Kovacik v. Reed
Supreme Court of California
315 P.2d 314 (1957)
Relevant factsFree
Kovacik (plaintiff) and Reed (defendant) formed a partnership to remodel kitchens, with Kovacik contributing $10,000 in funds and Reed contributing his labor and skill as an uncompensated estimator and project superintendent; the two never discussed how losses would be shared. The venture lost money overall, and when Kovacik asked Reed to pay half the total losses, Reed refused, prompting Kovacik to sue. The lower court held the partners had implicitly agreed to share profits and losses equally, making Reed liable for half the shortfall.
IssueFree
Whether a partner who contributed only skill and labor, rather than capital, is liable for a share of the partnership's monetary losses.