Brief Fact Summary
Salmon and Meinhard entered into a joint venture that centered around a twenty-year lease for the premises known as the Hotel Bristol at the northwest corner of Forty-second Street and Fifth Avenue in Manhattan. Before the lease ended, a third party approached Salmon about a new lease. Salmon entered into the new lease with the third-party and did not tell Meinhard. Meinhard sued for breach of duty of loyalty.

Rule of Law and Holding
"Joint adventurers, like copartners, owe to one another, while the enterprise continues, the duty of the finest loyalty." A partner has a duty to disclose an opportunity to his partner(s) if the opportunity arises out of the partnership. The Court held in this case that opportunity did arise out of the partnership and thus Salmon had a duty to disclose the opportunity to Meinhard.

Topics
Partnerships & Relatives

Subtopics
Formation