Assignment task:
Monica and Phoebe decide to start a new café and wine bar, the Pick Me Up Café. Monica agrees to provide $40,000 in start-up funds but will not work at the café. Phoebe has no cash to contribute to the venture but will contribute her labor and will provide nightly concerts for Pick Me Up patrons. Monica and Phoebe execute a " Partnership Agreement." The somewhat "bare-bones" agreement specifies what each will contribute to the venture, states that Phoebe shall manage the day-to-day affairs of the café, and provides that profits will be split so that Phoebe will receive 75% of the profits, with Monica receiving the remaining 25%. Phoebe hires Rachel and Ross to work as servers. They (Rachel and Ross) are each to be paid minimum wage plus 4% of net sales. In order to give Ross and Rachel a sense of "ownership" in the venture, Phoebe invites the two to make suggestions about how the Pick Me Up should be run. Phoebe also hired an independent contractor who worked there as a security guard.
a. Would a plaintiff who sued for a tort broken by the independent contractor be able to recover anything from Monica, Rachel, or Ross? If so, how much may the plaintiff recover from each? State the basis for your answer.
b. If Phoebe did have to cover some portion of the judgment rendered against the Pick Me Up, would she be entitled to recovery from Monica, Rachel, and/or Ross? If so, how much could she recover from each?