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?
PartnershipA 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...
Step by Step Answer:
Business Law and the Legal Environment
ISBN: 978-1337736954
8th edition
Authors: Jeffrey F. Beatty, Susan S. Samuelson, Patricia Sanchez Abril