BERNSTEIN V. NEMEYER
570 A.2d 164 (1990)
NATURE OF THE CASE: This was a dispute over limited partnership investments. Bernstein (P), limited partners, filed suit against Nemeyer (D), general partners, for breach of contract, willful misconduct, and violation of unfair trade practices. P appealed a judgment for D.
FACTS: P invested as limited partners in a partnership formed to renovate two apartment complexes in Houston. P's objectives were capital appreciation and a tax shelter for assets previously acquired. D made a negative cash flow guaranty: they promised to lend the partnership the amount by which defined operating and financing expenses exceeded the cash receipts from normal business operations. P was informed of the risk of foreclosure from these additional loans in a weak real estate marketplace. D loaned P $3,000,000 and then defaulted under their obligation. The mortgages were foreclosed upon and P and D lost their entire investments. P sued for rescission of the contract and rescission of their investment. The trial court denied relief based on the fact that the default by D was not material and that P's losses resulted from a bad market rather than D's breach. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
https://bsmsphd.com
No comments:
Post a Comment