Don ONeal, a physician, was the managing partner of a medical practice, Sulphur Springs Medical-Surgical Clinic. As
Question:
Don O’Neal, a physician, was the managing partner of a medical practice, Sulphur Springs Medical-Surgical Clinic. As managing partner, he made the day-to-day financial decisions regarding the operations of the Clinic. The other partners relied on O’Neal to make decisions concerning the operations of the enterprise and the management of the partnership assets. In 2003, O’Neal started a separate business entity with Gary Stokes, named North Campus Development Ltd. Among its activities, North Campus purchased medical equipment that it leased to the Clinic, and it acted as a recruiter of specialty physicians for the Clinic. In 2004, North Campus recruited Scott Powell, MD, to practice at the Clinic. The convoluted compensation agreement required Powell to make payments to the Clinic and required the Clinic to make payments to Powell. For seven months of his employment, Powell made payments to the Clinic in a series of 13 checks in varying amounts, totaling $370,517. Despite the fact that each of these checks from Powell was made payable to the Clinic, O’Neal deposited each of them into his personal account and not to the account of the Clinic. Has O’Neal breached a fiduciary duty to the partnership?
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-1259917110
17th edition
Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory