The parties entered into an oral joint venture to redevelop a residential property, with profits to be shared equally after completion and sale.
After disputes arose during construction, the defendant excluded the plaintiff from the project, refused to acknowledge the plaintiff’s interest in the property, obtained a second mortgage without notice, and ultimately sold the unfinished property without the plaintiff’s consent.
The court found the arrangement constituted a partnership under the Partnerships Act and that the defendant’s conduct amounted to a repudiation and breach of the partnership agreement.
The plaintiff was therefore justified in ceasing further financial contributions after being excluded from the project.
Liability was determined in Phase 1, with damages and accounting to be addressed in a subsequent phase.
