May 9, 2017
It’s never a pretty sight when a business partnership has to be dissolved. Even uglier is what happens when you put in the time and effort to create a partnership agreement, only to find that the terms you included create more confusion than clarity. The cleverly-named blog, New York Business Divorce (why didn’t I think of that?), highlights a recent New York State case where the confusion over the definition of certain terms led to a major dispute when Joseph Costello, a lawyer with the firm of Costello, Shea & Gaffney, died. The surviving law partners disagreed with the way Costello’s estate interpreted their 1993 partnership agreement. (Gee, imagine that). At stake was Costello’s capital account when he died, calculated at over $130,000.00. It’s a fascinating (for some of us) analysis of how the Nassau County Court reached its decision. Essentially, the judge had to parse through the language to see where the inconsistencies lay. If you accept Costello’s estate’s interpretation of the language, did it meet a reasonable, logical conclusion? What about the surviving partners?…
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