2009AP438 Bushard v. Reisman

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Partnerships
Salary; equity

The plain language of sec. 178.15 dictates distribution of partnership profits, however inequitable the result.
“We are cognizant that the result mandated by the statute appears to be inequitable under the facts of this case. Nevertheless, a court ‘may not exercise its equitable authority if such exercise would ignore a statutory mandate.’ GMAC Mortg. Corp. v. Gisvold, 215 Wis. 2d 459, 480, 572 N.W.2d 466 (1998).”

“Wisconsin Stat. Ch. 178 reflects the legislature’s public policy choices about the rights and obligations of partners in the absence of agreements to the contrary. As discussed above, the Uniform Law Commission has adopted revisions to the UPA that would ameliorate the harsh result reached in this case. Nevertheless, the Wisconsin legislature has not adopted these revisions. As the court of appeals concluded in Gull, ‘if the rule against extra compensation is to be modified, we believe the legislature must revise § 178.15(6), Stats.’ Gull, 185 Wis. 2d at 626.”
Affirmed.

2009AP438 Bushard v. Reisman

Bradley, J.

Attorneys: For Appellant: Ryberg, J. Drew, Eau Claire; Happe, Michael J., Eau Claire; Wahl, Kathryn E., Eau Claire; For Respondent: Hunt, Kay N., Minneapolis, MN; Jacobson, Thomas R., Hudson

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