Law Library | Attorney Advertising | Financial Services | Affiliate Program | Blawg
Find the Right Lawyer Now:
Limited Liability Partnerships
A limited liability partnership is a type of business arrangement that allows the individual partners to be free from most debts and liabilities of all of the other partners. It is a popular arrangement for businesses such as law, accounting, and architecture firms.
Generally, losses and gains from the business are passed through the partners according to their partnership agreement.
It allows all partners to take an active role in the management of the business, while shielding them from liability of the other partners. In an action brought against the partnership as a whole, no single partner is personally liable.
However, for acts of negligence, it is usually the partner who actually did the wrong who is personally liable. The partners are only shielded from individual liability when the wrong was committed by the partnership itself (which exists as a separate legal entity from its constituent members).
A limited liability partnership may sue, in its own capacity, individual partners. This could include actions for breaching the partnership agreement, or causing harm to the partnership. An individual partner may also sue the partnership in order to enforce the partnership agreement, or to enforce his or her right to relevant information about the partnership, and his or her rights to an equal share of profits generated by the business.
As to lawsuits between partners, there are no special rules when the partner is suing another partner for conduct that had nothing to do with the partnership (for example, if one partner hit the other with his car). However, if the partner acted with the authority of the partnership against another partner personally, the partnership will probably have to be sued.
Consult a Lawyer - Present Your Case Now!
Find the Right Lawyer Now:
Did you find this article informative?
