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