In Saunders v. Firtel, as in Cline v. Grelock, the two business partners were close friends. [1] Firtel was the sole owner of Adco, a pharmaceutical sales corporation and Saunders worked as a sales representative for a medical supply company. In 1986, the two agreed to enter into a formal business relationship which included Saunders to obtain a 49% shareholder interest in Adco and to become an employee of the company. This written agreement allowed for both of them to devote their time and efforts to the business and split an equal compensation and fringe benefits but also did allow Firtel to spend substantial time away from the business. … Read the rest
