Fiduciary Duties of Partners Case 37-6: Karl Horvath, Hein Ru?sen
Business Finance
37–3. Fiduciary Duties of Partners. Karl Horvath, Hein Rüsen, and Carl Thomas formed a partnership, HRT Enter- prises, to buy a manufacturing plant. Rüsen and Thomas leased the plant to their own company, Merkur Steel. Merkur then sublet the premises to other companies owned by Rüsen and Thomas. The rent that these companies paid to Merkur was higher than the rent that Merkur paid to HRT. Rüsen and Thomas did not tell Horvath about the subleases. Did Rüsen and Thomas breach their fiduciary duties to HRT and Hor- vath? Discuss. [Horvath v. HRT Enterprises, 489 Mich.App. 992, 800 N.W.2d 595
Analyze Business Case 37-6, “Fiduciary Duties of Partners,” located above. Prepare a professional-caliber brief on the case.
Based on the case information provided:
- State the facts of the case and the key issues.
- Cite the code or statute provisions applicable to the case.
- Determine whether Rüsen and Thomas breached their fiduciary duties, and explain your reasoning.
- Express your main points, arguments, concepts, and information coherently and logically.
To support your brief:
- Identify the types of partnerships and applicable law.
- Define the rights and duties of partners, and cite relevant law.
- Explain the liabilities of partners, and cite relevant law.
Additional Requirements
- Cover page: Include your name, the assignment number, and the assignment or case title.
- Length: 1–2 double-spaced pages, not including the cover page.
- Font and font size: Times New Roman, 12-point.
- APA formatting: Format resources and citations according to current APA guidelines.
