Practice point: An action seeking an accounting of a partnership on the basis that a former partner withdrew excess profits will be dismissed if the partnership’s tax returns indicate that the former partner had a positive capital account balance.
Practitioners should note that representations made in the partnership’s tax returns are binding.
Case: Peterson v. Neville, NY Slip Op 00124 (1st Dept. 2009)
The opinion is here.
Monday’s issue: Foreclosures.
