Opinion ID: 563774
Heading Depth: 2
Heading Rank: 1

Heading: Factual Precis.

Text: 65 We pause to rehearse certain facts. Sometime in 1983, FRG hired Faneuil to procure financing for the Veranda Beach acquisition. Faneuil was paid $5,000 per month for its services. These payments were discontinued as of February 1984. From then on, the parties' relationship was governed by a written agreement dated April 16, 1984 (the Agreement). Under the Agreement, Faneuil was to provide services as originally contemplated. Its reward for those services was clearly delineated in the Agreement: 66 Faneuil agrees to become a Limited Partner in the Partnership and, in addition to the services described hereinabove, shall use its best efforts to arrange for the financing needs of the Partnership of all kinds.... Prior to syndication, Faneuil's interest shall be equal to forty-five percent (45%) of the operating profits and losses and cash flow distributions from the Partnership. 67 Faneuil was to receive the above-described interest in lieu of any other remuneration. Moreover, to obtain its share of profits and cash flow, Faneuil was not obliged to contribute any capital or bear any of the financial risks associated with the partnership's operations. 68 Expert testimony at trial indicated that, had the closing been completed as planned, the property acquired would have been worth much more than the purchase price; FRG's equity, the expert said, would have equalled $2,300,000. The only testimony offered on the likelihood of partnership profits suggested that significant carrying costs and operating expenses over the first few years would probably cause the venture to run at a loss. 69