Leland McElmurry was one of three partners of MHS Enterprises, a Michigan partnership Commonwealth Capital Investment Corp sued the partnership and obtained a judgment of $1,137,285 against it, but the partnership could not pay the judgment Commonwealth then sued McElmurry for the entire debt on th...

Extent of partner s liability Partners are jointly liable for debt ...

Leland McElmurry was one of three partners of MHS Enterprises, a Michigan partnership. Commonwealth Capital Investment Corp.

Question:

Leland McElmurry was one of three partners of MHS Enterprises, a Michigan Commonwealth Capital Investment Corp. sued the and obtained a judgment of $1,137,285 against it, but the could not pay the judgment. Commonwealth then sued McElmurry for the entire debt on the theory that, as a partner of MHS, he was liable for its debts. What, if any, is McElmurry's liability? [Commonwealth Capital Investment Corp. v. McElmurry, 302 N.W.2d 222 (Mich. App.)]

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...