Balcor Income Properties, Ltd. v. Arlen Realty, Inc.

Balcor Income Properties (Balcor) brought an action against Arlen Realty, Inc. (Realty), and Arlen Management Corp. (Management), alleging breach of contract and breach of fiduciary duty. Counts I and III of the complaint set out Balcor’s claims against Management; counts II and IV set out identical claims against Realty. On Realty’s motion, the trial court dismissed counts II and IV. Realty is Balcor’s partner in two partnerships, and the trial court based its decision on the general rule that one partner cannot sue another partner prior to final settlement of the partnership’s affairs.…