Partnership Equities, Inc. v. Marten

Under the amended agreement of limited partnership to which they subscribed, Amin J. Khoury and James F. Marten were each obligated to contribute $83,750 to the capital of Columbia-Heather, Ltd., a limited partnership organized under Ohio law. That partnership was engaged in the construction of a 110-unit apartment project in Toledo financed with a mortgage loan insured by the Federal Housing Administration. As is the mode in “tax shelter” deals — and this was one — the obligation of limited partners to contribute cash to capital was sweetened by permitting them to make payments in…