Shamloo v. Ladd
California Court of Appeal, Second District
2003 WL 68054
Farhad Shamloo (plaintiff) and Rick Ladd (defendant) formed an unwritten manufacturing partnership in which Ladd contributed $75,000 in capital and later loaned the firm another $75,000, while Shamloo contributed only labor and industry expertise, with no agreement that his services would be treated as a capital contribution or that he'd be compensated for them. When Shamloo sued for dissolution and an accounting, the trial court awarded him $27,344 for his services and declined to award Ladd interest on his loan; Ladd appealed both rulings.
Whether a partner is entitled to compensation for providing services to the firm in the absence of an express agreement that the partner will be compensated.