The One Thing You Should Not Call Someone Who Is Not Your Partner

Allen Matkins
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I recently wrote about Magistrate Judge Jacqueline Scott Corley's ruling in  t'Bear v. Forman, 2019 U.S. Dist. LEXIS 19460.  In that post, I focused on the question of the enforcement of loans made by an unlicensed lender.  The case also involved a claim that the defendant owed a fiduciary duty based on the formation of a partnership under California law.

In denying the defendant's motion for summary judgment on the question of whether the parties had formed a partnership, Judge Corley focused on the emails exchanged by the parties that explicitly referenced their partnership.  For example, one email from the defendant sent an email to the plaintiff stating: "Last March, you asked that I level with you regarding our partnership in FairWay. . . . Consequently, Caleb, I am no longer able to proceed as your partner."  

The moral of the story is if you don't want to be partners, don't refer to yourselves as partners.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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