Mas Associates, LLC v. Korotki
Maryland Court of Special Appeals
2018 WL 2258972 (2018)
Harry Korotki (plaintiff) owned a mortgage company and, along with two other mortgage companies including MAS Associates, LLC (defendant), agreed in principle to merge their businesses. Though the companies never signed a drafted merger agreement, they combined workforces, each contributed $150,000 in capital to the new venture, split its profits equally, and required unanimous agreement on major decisions. When Korotki later gave notice he was leaving for health reasons, the other owners refused to negotiate a buyout, and Korotki sued; the trial court found a partnership existed and awarded Korotki the value of his interest, prompting the other owners' appeal.
Whether, even absent a formal partnership agreement, a court may find that a partnership was established if the parties intended to share profits and share in the management of the business.