291 Ga. 39
Ga.2012Background
- Jordan and Moses formed a two-member partnership on January 1, 2003 for an indefinite term.
- In August 2006, Jordan told Moses he contemplated ending the partnership and later stated he was dissolving it.
- Moses disagreed, but the parties continued to communicate regarding dissolution.
- On February 22, 2007, Jordan filed a declaratory judgment action seeking dissolution as of September 26, 2006 and related financial declarations.
- Moses counterclaimed, including wrongful dissolution; the trial court granted Jordan summary judgment on that claim; Court of Appeals reversed; Supreme Court granted certiorari.
- Georgia law governing wrongful dissolution involves fiduciary duties and may include damages from existing or coincident business opportunities or income/assets, not solely the so-called new prosperity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether wrongful dissolution damages extend to existing or coincident opportunities | Moses argues damages may include ongoing partnership opportunities and income that existed at dissolution. | Jordan contends damages are limited to future or post-dissolution effects under partnership law. | Damages may include existing or coincident opportunities and income, not only 'new prosperity'. |
| Whether dissolution must be in good faith | Moses asserts the dissolution was wrongful in bad faith breaches of fiduciary duty. | Jordan argues dissolution can occur lawfully within partners' rights, subject to fiduciary duties. | Dissolution must be exercised in good faith; improper dissolution can support liability. |
| What damages are recoverable for wrongful dissolution | Moses seeks damages including loss of partnership income and misappropriated assets. | Jordan contests recovery for past misappropriations as wrongful dissolution damages. | On remand, damages require proof of loss of an identified existing or future business opportunity or income caused by dissolution; past misappropriations may support contract-type claims but not automatically wrongful-dissolution damages. |
Key Cases Cited
- Arford v. Blalock, 199 Ga.App. 434 (1991) (wrongful dissolution includes misappropriation of partnership prosperity in proper context)
- Wilensky v. Blalock, 262 Ga. 95 (1992) (rejects narrow 'new prosperity' requirement; governs bad-faith dissolution framework)
- Moses v. Jordan, 310 Ga.App. 637 (2011) (Court of Appeals applying wrongful dissolution analysis; cited by Supreme Court)
- Asgharneya v. Hadavi, 298 Ga. App. 693 (2009) (illustrates continued profits as damages in wrongful dissolution context)
