In June 2001, Greenfeld, Stitely, and Karstetter negotiated to merge their practices into a partner-ship that would provide accounting, tax,…
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In June 2001, Greenfeld, Stitely, and Karstetter negotiated to merge their practices into a partner-ship that would provide accounting, tax, and infor-mation technology services. The partnership was profitable every year from its inception. However, Stitely felt that Greenfeld’s information technol-ogy services were not generating as much revenue as his one- third share in the partnership should. So Stitely indicated to the partners that he wanted to withdraw from the partnership. Soon after, Stitely and Karstetter agreed to instead continue as part-ners together after Greenfeld was out of the picture. Greenfeld did not violate his partnership agreement, but the two partners forced Greenfeld out of the part-nership without compensating him for his interest. They accomplished this by unlawful means, such as purporting to withdraw from the partnership while in reality seizing control of its assets. Furthermore, they transferred the assets of the partnership to their new company, preventing Greenfeld from having computer access to the business files, software, and client records. Was the partnership terminated prop-erly? If the dissolution was wrongful, what poten-tial consequences could Stitely and Karstetter face? [ Wayne I. Greenfeld v. Frank L. Stitely, et al., 2007 Va. Cir. LEXIS 7 ( 2007).]
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