The Washington State Court of Appeals has erroneously interpreted UPA § 807 to permit a court ordered buy-out upon dissolution, rather than requiring a public sale. In Horne v. Aune,an unmarried couple formed a partnership that owned their residence. When the domestic relationship deteriorated, Ms. Horne brought suit for dissolution. Both parties wanted to own the house. The trial court found that the equity in the house was $100,000, ordered the parties to decide which party would buy out the other, and ordered the property sold if the parties were unable to agree. However, when the parties reported that they were unable to agree which would buy out the other, the court ordered that Ms. Horne buy out Mr. Aune and the Court of Appeals affirmed. The case rejects McCormick v. Brevig, casebook page 730, which correctly decided the issue.
One entertaining aspect is the language that begins the partnership agreement:
'This will serve as the legal jargon to indicate that this is a legal and binding agreement.'
The parties owned no business in common thus it is unclear why the UPA applies at all, since the parties were not co-owners of a business for profit.