Jefferson County, Colorado Jury Awards $7,500 in Partnership Dispute

In March 2012, two individuals formed a non-franchised car dealership in Jefferson County, Colorado, agreeing to operate as general partners and divide responsibilities, profits, and losses evenly. The plaintiff alleged that by November 2012, the defendant’s handling of sales, inventory, and pricing led the plaintiff to make over $100,000 in personal cash deposits to the business. The plaintiff claimed the defendant failed to contribute similarly and abandoned the business in February 2013.

The plaintiff filed a lawsuit in March 2014 in the District Court of Jefferson County, Colorado, asserting claims for breach of contract, fraud, and promissory estoppel. The plaintiff sought at least $156,400 in damages, arguing the defendant failed to uphold the agreement, misrepresented qualifications, and should be estopped from refusing to share losses. The defendant denied the allegations, arguing the plaintiff's claims were barred by the plaintiff's own breach of contract and raising affirmative defenses, including failure to mitigate and unclean hands.

Following a trial in February 2015, a jury found that the parties had entered a contract to operate the dealership as general partners and that the defendant failed to share equally in the business's losses. The jury also determined the defendant entered an oral agreement to pay the dealership's debts. However, the jury found in favor of the defendant on the fraud and promissory estoppel claims. The court subsequently entered judgment for the plaintiff in the amount of $7,500, along with court costs and interest.