Fiduciary Duties of Partners. Karl Horvath, Hein Rsen, and Carl Thomas formed a partnership, HRT Enter-prises, to buy a manufacturing plant. Rsen and Thomas leased the plant to their own company, Merkur Steel. Merkur then sublet the premises to other companies owned by Rsen and Thomas. The rent that these companies paid to Merkur was higher than the rent that Merkur paid to HRT. Rsen and Thomas did not tell Horvath about the subleases. Did Rsen and Thomas breach their fiduciary duties to HRT and Horvath?