Question
In April 2018, Gary entered into an agreement to sell his restaurant business to Nova. Under the terms of the agreement Nova was required to
In April 2018, Gary entered into an agreement to sell his restaurant business to Nova. Under the terms of the agreement Nova was required to pay Gary $2,000 per week for a period of six years. The contract provided Gary with the right to control all business decisions made during the six-year payment period.
Nova took over operation of the restaurant on May 1, 2018, but because of her inexperience ran into numerous difficulties. On May 15, 2018, Gary agreed to help Nova with the day-to-day operations for six months. At all times during the six-year payment period, Gary kept close tabs on the restaurant, maintained access to the books and records, occasionally advanced funds needed for restaurant improvements, and frequently consulted with Nova concerning business decisions. In 2020, Nova secretly obtained a line of credit from the First Metro Bank ("FMB"); Nova represented to the bank that the funds were being used for improvements to the restaurant, but, in fact, Nova used the funds personally. In 2021, Nova filed for personal bankruptcy reporting no assets and substantial debt. She listed the loan from FMB as "a joint obligation with Gary, my partner in the restaurant business."
Ultimately FMB filed suit against Gary to recover the sums borrowed by Nova. The trial court determined that Gary and Nova were either partners or joint venturers and awarded damages to FMB. Gary appealed. Should the appeals court affirm the trial court's ruling?
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