Robert Marengo & Francine Marengo v. Terry Bowen

This is an appeal from the judgment of the Chancellor regarding the judicial dissolution of a continuing partnership. The trial court determined the withdrawing partner's debt should not be offset against his capital account in assessing his dissolution date value until the valuation of the business was made by the court, it was proper to add an additional $20,000 as a going concern adjustment to the valuation of the partnership, certain salary adjustments were proper, and a marketability and/or minority discount does not apply to the partnership. This Court concluded the trial court's determination offsetting the withdrawing partner's debt to the partnership as of the trial date was proper, the trial court erred in adding an additional $20,000 as a going concern value to the valuation of the partnership, the trial court's salary adjustment was proper, the trial court's refusal to apply a minority and/or marketability discount was proper, and the trial court's adjustment for a portion of the partnership's legal and professional expenses was proper. The judgment of the trial court is affirmed in part, reversed in part, and remanded for recalculation of the value of the withdrawing partner's interest as consistent with this order. Costs of this appeal shall be split between the appellant and the appellee.