McCain
McCain v. Phoenix Resources, Inc.
Opinion
Opinion
Low, J.
This is an appeal from the grant of a preliminary injunction ordering the corporate managing general partner of a limited partnership to produce certain partnership information for inspection by two of the limited partners. We conclude that absent any restriction by statute or by the partnership agreement, a limited partner has the right to inspect all documents and papers affecting the partnership, including those held by the partnership’s attorney. The superior court did not abuse its discretion.
By written agreement dated September 30, 1980, Wesley G. McCain and Edward B. Howell (hereafter plaintiffs) became limited partners in a partnership called “Valley Investors.” Phoenix Resources, Inc., a California corporation (hereafter defendant), was designated the managing general partner and was given “exclusive control over the business” of the limited partnership. The limited partnership was formed for the purpose of owning and developing 7.45 acres of land in Monterey, California.
In early 1984, plaintiffs attempted to inspect information in the possession of two law firms that had acted as attorneys for defendant managing general partner. Both law firms resisted…