Vigneau v. Storch Engineers

Donald Vigneau (plaintiff), a partner at consulting firm Storch Engineers (defendant), was bound by a partnership agreement requiring him to devote his full time to Storch and give full, truthful disclosure of partnership-related matters. Without telling Storch, Vigneau formed a real estate venture, Highview Condominium Associates (HCA), with fellow Storch employee Joseph Merluzzo, and had HCA hire Storch for engineering work, personally profiting over $28,000; the two later launched a second, undisclosed venture, Granford Associates, similarly hiring Storch, though Granford ultimately lost Vigneau roughly $22,000. Storch was paid fair market rates for its work on both projects. After Vigneau resigned in 1987, Storch discovered his role in both ventures in 1989 and, when Vigneau sued for the stipulated $167,794 value of his partnership interest, Storch argued his self-dealing breach barred recovery and counterclaimed to recover the $164,105 it had paid him during the period of his breach.