Court Opinion

ID: 9593430
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:22:29.555598+00
Date Added: 2024-06-11T18:01:21.517057
License: Public Domain

Banke, Presiding Judge,
dissenting.
I would reverse the grant of Tandy’s motion for summary judgment.
By the terms of the written agreement, Tandy was authorized to “withdraw from Manager’s Security Deposit ... (4) Any loss sustained by [Tandy] by reason of Manager’s failure to manage the Store and/or protect the assets of the store with a reasonable degree of care, skill and judgment; and/or, his/her failure to fulfill Manager’s obligations under this Agreement.” The agreement further specified that in the event the company’s “total investment” in inventory and net book value of fixed assets in the store should come to exceed double the amount of the security deposit, the manager could be required to make an additional security deposit in an amount equal to 50 percent of such excess and could be held accountable for a “return on investment charge” on the amount of such excess until the additional security deposit was made. On the basis of these additional contractual terms, I believe a material factual question exists as to whether the appellant shared with Tandy a joint risk of loss as well as a joint interest in profits, with the result that, notwithstanding the language of the agreement specifying that no relationship other than that of employee-employer was contemplated, he acquired an equity interest in the business.
I am authorized to state that Presiding Judge McMurray joins in this dissent.
*898Decided July 5, 1988
Rehearing denied July 21, 1988
Morgan M. Robertson, for appellant.
Everette L. Doffermyre, Jr., for appellee.