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Business, 14.02.2020 03:44 salgado100400

Hurwitz and Padden formed a two-person law firm as a partnership without a written agreement. They shared all proceeds on a fifty-fifty basis and reported all income as partnership income. A year later, Hurwitz filed articles of organization with the state of Minnesota to establish the firm as an LLC. When they formed the LLC, they did not create an operating agreement. Three years after they formed the LLC, Padden told Hurwitz that he wanted to dissolve their professional relationship. They resolved all issues between them except for a division of fees from several of the firm's cases. Hurwitz sued seeking distribution of the profits on the basis of partnership law which would result in a fifty-fifty split. Padden argued that he was entitled to a greater share of the profits because they had formed an LLC in which he was allowed to receive a greater share of the profits than 50 percent. The court most likely held that Padden was

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