Blanchard v. Energy Associates Northwest

The former managing partner of a partnership sued his partners and the partnership for reimbursement of certain expenses and for restoration of withheld revenues. The defendants counterclaimed for conversion of capital funds and breach of fiduciary duty. The defendants prevailed at trial, and plaintiff appeals. We reverse and remand for a dissolution and accounting.

Facts

In 1977, plaintiff Wheaton Blanchard, an oil and gas investment promoter, and defendant Robert St. Louis, an attorney, formed Energy Associates Northwest (EANW), a general partnership to manage oil and gas investments. Other…