Yorktown Systems sued Threat TEC, its partner in an SBA mentor-protégé joint venture, after Threat TEC tried to terminate Yorktown's subcontract for convenience to grab its work share. The court ruled that Threat TEC, as the joint venture manager, breached its fiduciary duty by acting in bad faith and failing to follow regulatory requirements for terminations. This case matters to subcontractors because it shows courts will protect you if a joint venture partner tries to push you out improperly—even if the contract technically allows termination for convenience.
Joint venture managers have fiduciary duties to all members. You can't use your management role to unfairly eliminate partners or seize their work.
Termination for convenience clauses aren't absolute. You must still comply with SBA regulations and act in good faith, not to benefit yourself at a partner's expense.