BUT WILL IT FLOAT?

In Bouchard v. Champlain Enterprises, Inc., Gilles Bouchard and Champlain Enterprises were general partners in a venture to construct and operate a Lake Champlain marina and boat storage facility.

Enterprises contributed an initial $500,000, but each was obligated to pay one half of all capital improvements.

While Enterprises continued to remit payments, Bouchard refused to make any contributions. When the partnership later defaulted on its mortgage, Enterprises purchased the marina at a foreclosure sale and excluded Bouchard from the marina's operations.

After suit was filed, the Clinton County Supreme Court found Bouchard breached the partnership agreement and owed Enterprises $1,144,319.

On appeal, the Appellate Division, Third Department discredited Bouchard's argument he never consented to marina expenditures -- such as a pool, a gazebo, tennis courts, and boat house -- since his construction company built the boat house and his signature was required for the payment of those improvements.

Will these parties be sailing to the Court of Appeals?

To download a copy of the Appellate Division's decision, please use this link: Bouchard v. Champlain Enterprises, Inc.