Benson

*1201 Opinion

In this case, we consider whether the trial court properly concluded the provisions of Corporations Code section 15042 did not apply where the partnership agreement set forth the method by which the partnership assets were to be valued upon the death of a partner. 1 We conclude the valuation provision contained in the partnership agreement did not operate to bar the estate from receiving interest pursuant to section 15042. The judgment is reversed with directions that the estate be awarded interest pursuant to section 15042. The judgment is otherwise affirmed.

Statement of Facts and Proceedings Below

On January 1, 1966, Seymour Zucker (Zucker) and Gerald S. Rubin (Rubin) entered into a partnership agreement (the Agreement) to develop and operate income-producing properties. The Agreement provided: “11. In the event of the death of either partner, the deceased partner’s interest in the partnership business shall be computed at the value determined as hereinafter set forth in Paragraph 12 as of the date of his death. The surviving partner shall have the option to liquidate the partnership business and terminate the partnership or elect to purchase the partnership…