Thursday, May 1, 2008

Suing Former Partners

In an appeal in a breach of contract action, the New York Appellate Division for the Second Judicial Department held that the trial court had improperly dismissed the complaint of a former law firm partner that the defendant partners had failed to pay him the value of his interest in the partnership:

"The Court of Appeals recently made clear that the 'liability shield' created by Partnership Law § 26(b) for general partners of a registered limited liability partnership only applies to 'a partner's liability to third parties, and, in fact, is part of article 3 of the Partnership Law ( Relations of Partners to Persons Dealing with the Partnership'), not article 4 ( Relations of Partners to One Another')' (Ederer v Gursky, 9 NY3d 514, 524). Thus, Partnership Law § 26(b) 'does not shield a general partner in a registered limited liability partnership from personal liability for breaches of the partnership's or partners' obligations to each other' (Ederer v Gursky, 9 NY3d at 516)." 

(Mike Frisch)

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» after Ederer v. Gursky... from Unincorporated Business Law Prof Blog
posted by Gary Rosin The first reported New York opinion to rely on Ederer v. Gursky is out: Kuslansky v. Kuslansky, Robbins, Stechel and Cunningham, LLP,2008 NY Slip Op. 04061 (NY App. Div. April 29, 2008). Oddly enough, Kuslansky involves [Read More]

Tracked on May 6, 2008 12:58:07 PM

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