Brief Fact Summary. Defendant, Chris Prentiss, appealed the decision to allow Plaintiffs, his former partners, to successfully bid for the business after it was dissolved.
Synopsis of Rule of Law. Absent bad faith or an agreement that states otherwise, a partner may bid on the resale of the partnership.
The method of conducting and the confirmation of a judicial sale lie within the sound discretion of the court ordering the sale.View Full Point of Law
Issue. The issue is whether Plaintiffs should be allowed to successfully bid for their former business after they excluded Defendant from the management of the business.
Held. Absent bad faith or a prior agreement that states otherwise, Plaintiffs are entitled to bid on their own former assets during a judicial sale. The court referenced A.R.S. Section: 29-238 which outlined the rights of each partner after a dissolution but offered no basis for denying the partners to bid on the resale.
Discussion. Defendant could have sought damages under a breach of their partnership agreement if it was found that Plaintiffs were responsible for the wrongful dissolution of the partnership.