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DEFENDANT DEMONSTRATED NO PARTNERSHIP HAD BEEN FORMED, SUMMARY JUDGMENT IN THIS ACTION ALLEGING BREACH OF A PARTNERSHIP AGREEMENT PROPERLY GRANTED. ​

The Fourth Department, over a dissent, determined summary judgment was properly granted to defendant in this breach of a partnership agreement action. Defendant demonstrated no partnership had been formed:

“A partnership is an association of two or more persons to carry on as co-owners a business for profit” (Partnership Law § 10 [1]). Where, as here, there is no written partnership agreement between the parties, a court looks to the parties’ conduct, intent, and relationship to determine whether a partnership existed in fact … . The relevant factors are (1) the parties’ intent, whether express or implied; (2) whether there was joint control and management of the business; (3) whether the parties shared both profits and losses; and (4) whether the parties combined their property, skill, or knowledge … . No single factor is determinative; a court considers the parties’ relationship as a whole … .

… [W}e must consider whether the parties expressly or implicitly intended to become partners … . Evidence concerning the parties’ preliminary negotiations bears directly on their intent …  In support of his motion, defendant submitted, inter alia, the deposition testimony of plaintiff, the affidavit of defendant, invoices, a lease, and the parties’ correspondence documenting their contract negotiations. That evidence establishes that the parties never shared the intent to become partners. In June 2004, defendant wrote an email to plaintiff suggesting that they discuss “how [they] might be able to work together.” Plaintiff responded that a partnership “might work” and expressed hope that the parties could come to a “workable agreement.” Thereafter, the parties met in person and plaintiff explained that he wanted a 50% share in a partnership. Plaintiff later testified at his deposition that, upon hearing that proposal, defendant had “a look on his face like maybe he wasn’t expecting that,” and did not respond.

Although plaintiff testified that he interpreted defendant’s silence as an agreement to an equal partnership, the documentary evidence undermines any such assumption. * * * … [T]he evidence demonstrates that the parties never shared the intent to enter into a partnership, although they initially had explored the possibility of one. Hammond v Smith, 2017 NY Slip Op 05337, 4th Dept 6-30-17

 

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