Smith & West, LLP had two partners: Michael L. Gaus and John C. West. The partnership registered

Question:

Smith & West, LLP had two partners: Michael L. Gaus and John C. West. The partnership registered in Texas as a limited liability partnership. The Texas statute requires LLPs to renew their registrations each year, but Smith & West never did so. Four years after its initial registration, the partnership entered into a lease with MF Partners (which subsequently assigned the lease to Apcar). Three years into the lease, Smith & West stopped paying rent and abandoned the premises. Apcar filed suit against the two partners individually and against the partnership. Gaus, West, and Apcar each filed a motion for summary judgment. The trial court granted Gaus and West’s motions while denying Apcar’s. 


Questions:

1. Were Gaus and West personally liable for payments due under Smith & West’s lease?

2. Smith & West registered as an LLP once. Why does it matter that it didn’t continue to renew its registration?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Business Law and the Legal Environment

ISBN: 978-1337736954

8th edition

Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril

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