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PERRETTA v. PROMETHEUS DEVELOPMENT CO.

No. 06-15526.

520 F.3d 1039 (2008)

Louis A. PERRETTA, Jr.; Frank Perretta, Plaintiffs-Appellants, v. PROMETHEUS DEVELOPMENT COMPANY, Inc.; Sanford N. Diller, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed March 27, 2008.

Attorney(s) appearing for the Case

Dennis A. Kendig, Kendig Law Firm, Encino, CA; Daniel L. Germain, Rosman & Germain LLP, Encino, CA; Edward J. Horowitz, a Professional Corporation, Pacific Palisades, CA; Bruce Adelstein, Encino, CA, for the plaintiffs-appellants.

Richard P. Tricker, Anderson, McPharlin & Conners, Los Angeles, CA; Steffen Johnson, Winston & Strawn, Washington, DC, for the defendants-appellees.

Before DAVID R. THOMPSON and MILAN D. SMITH, JR., Circuit Judges, and WILLIAM Q. HAYES, District Judge.

OPINION

MILAN D. SMITH, JR., Circuit Judge:

This action for breach of fiduciary duty requires us to decide what vote of the limited partners of a California limited partnership is necessary to ratify a self-interested transaction proposed by the partnership's general partner. We hold that only the partnership agreement may vary the unanimous ratification requirement of California law, and that it would be "manifestly unreasonable" for a partnership agreement...

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