After a three-day trial, a St. Louis County jury has returned a verdict for the former managing partner of M & A Partnership, which had alleged mismanagement over a period of more than ten years. Not only did the jury find in the former managing partner’s favor on each of M & A’s claims, but the court also subsequently awarded him more than $132,000 to reimburse him for the fees and expenses he incurred in defending the action. The former managing partner was represented by Gene Brockland and Brian Wacker of SmithAmundsen.
M & A had alleged breach of fiduciary duty and breach of the partnership agreement. In the complaint M & A sought to recover management fees of over half a million dollars, claiming that the fees were unauthorized and excessive. M & A also claimed he breached his fiduciary duty to the partnership by making charitable contributions. M & A sought to recover the management fees, as well as punitive damages.
Guided by Brockland and Wacker at trial, the former managing partner proved to the jury that the management fees he received during his tenure were in fact authorized by the partnership, and also that the fees were reasonable based on industry standards. Regarding the charitable contributions, they proved that he was simply carrying out the wishes of the partnership’s deceased benefactor, whose wishes were well known to the partnership.
The jury expressly found that the former managing partner acted in good faith and therefore he was entitled to indemnity from the partnership. The end result was a judgment in his favor and against M & A for $132,869.