Court of Appeal reverses dissolution of $200 million partnership and orders judgment for GMSR’s clients

Marasco v. Superior Court (Ring) (2008) 2008 Cal.App. Unpub. LEXIS 712 (California Second District Court of Appeal, Division Seven) [unpublished]. GMSR obtained a reversal of a trial court’s order dissolving a highly profitable real estate partnership. The partnership owned a large apartment complex on a ground lease in Marina del Rey, California, valued by plaintiffs at upwards of $200 million. The partners were at an impasse over whether, and on what conditions, to sell the partnership’s asset. After a three-week trial, the trial court ordered dissolution, agreeing with plaintiffs that an immediate sale would be more profitable. On appeal, GMSR successfully argued that the trial court had no power to dissolve a partnership that was currently profitable and that the statutory provisions for dissolution in the event of impracticability of carrying on the partnership did not apply. The Court of Appeal reversed the dissolution judgment and ordered entry of judgment for GMSR’s clients.