Richert v. Handly
Supreme Court of Washington
330 P.2d 1079 (1958)
Theodore Richert (plaintiff) and C.C. Handly (defendant) formed a logging partnership. Richert put in about $27,000 in capital for supplies; Handly supplied his own equipment and was paid for using it. The two agreed to split profits equally but never addressed how losses would be shared. Richert sued to dissolve the partnership and for an accounting. At dissolution, the business had about $15,000 in net receipts against Richert's contribution, leaving roughly a $12,000 net loss. The trial court held neither partner owed the other anything and dismissed Richert's complaint. Richert appealed.
Whether, absent a controlling partnership agreement on losses, each partner must contribute toward the partnership's losses according to their share of the profits.