Reference no: EM133229583

Jane, Liz and Nay were equal partners in a document-shredding business. Jane died but the partnership business continued. According to the partnership agreement, Jane's widower was entitled to a payment from the partnership in an amount equal to the fair market value of one-third of the partnership. Right after Jane's death, Liz and Nay received an offer from Laura to buy the business for $1,000,000.00. Liz and Nay rejected the offer since they wished to continue running the business themselves. However, they told no one about Laura's offer. They also secretly prepared another set of financial records which showed that the business was not very profitable. An appraiser hired by Jane's widower, not knowing of Laura's offer or the business' correct financial condition, set a fair market value of $33,000.00 for one-third of the business. Jane's widower agreed to accept $33,000.00 and the partnership made the payment to him. Three months later, Jane's widower found out about Laura's offer while he and Laura were vacationing together in Jamaica. Upon their return, Jane's widower sued Liz and Nay for $300,000.00 (the difference between the payment he received and one-third of Laura's offer). Who should win this lawsuit? Why