DHR Construction, LLC1: Parts A and B

After much hemming and hawing by Stephen Hodgetts, who tended to object to any new venture proposed by Richard Davis, Hodgetts and Davis formed a construction company with David Russ, DHR Construction LLC. In Jul 2003, Hodgetts and Davis reluctantly agreed that they needed to rid themselves of their co-owner, Russ, given the negative reports they had received from their subcontractors and business associates. Davis, Hodgetts, and Russ met for breakfast in Aug 2003 to finally iron out a buyout agreement. In Hodgetts and Davis's next weekly meeting, it became plain that events were not transpiring as planned. The story illustrates the perils of going into business with someone with whom you have not built trust.