The parties, who were partners in a land development project, disputed the interpretation of their Limited Partnership Agreement (LPA) and a subsequent 2005 document regarding the allocation of building lots.
The application judge declared the 2005 document enforceable and held that actions against a defaulting partner under Article 8.2 of the LPA required unanimous consent.
On appeal, the Court of Appeal upheld the enforceability of the 2005 document, finding it clarified an unclear term and was supported by functional consideration.
However, the Court allowed the appeal regarding Article 8.2, concluding that interpreting it to require unanimous consent would render other provisions meaningless and lead to commercially absurd results.