Opinion ID: 2123601
Heading Depth: 1
Heading Rank: 2

Heading: Harry Lerner

Text: Harry Lerner operates two businesses, a publishing company and a book binding company. Lerner and Lurie live next door to each other. They had only a nodding acquaintance until sometime in the fall of 1971, when they first discussed tax planning. In the course of their conversation, Lurie learned that Lerner was doing nothing to relieve his income tax burden. Lurie asked to review Lerner's tax returns for the past several years, and Lerner allowed him to do so. Shortly thereafter, Lurie gave Lerner a copy of the Stone House pro forma statement. Lerner looked it over and discussed it with Lurie. Lurie described the pro forma statement's projections as conservative and said that the price of meat was going up and that this was an extremely safe investment. Lerner had his attorney, Burton Weisberg, review the pro forma statement. In early November 1971, Lerner gave Lurie a check for $25,000 as partial payment for an interest in Stone House. Lerner subsequently received a copy of the Stone House partnership agreement and showed it to Weisberg. On December 30, 1971, Lurie telephoned Lerner and asked him why he had not yet signed and returned the partnership agreement. Lerner told Lurie that he had learned that Stone House was a general partnership instead of a limited partnership and that he was aware that in a general partnership there are obligations beyond your own investment, whereas a limited partnership was restricted to just your investment. Lerner described Lurie's response: He said they were technicalities, I should sign it, put it away, not to worry, this was a very safe investment, and that he was familiar with my tax situation, and this would bring some tax relief at that point, and that he has had a lot of success in this, and there wasn't anything for me to concern myself about, to sign and send it in. Lerner asked if his wife could sign the partnership agreement instead of him so that she, who had fewer assets than he did, would be the one liable for partnership debts. Lurie responded that this arrangement would be unacceptable to the bank making loans to Stone House. Lerner then signed the partnership agreement and mailed it to Lurie.