Steven Gursky and Louis Ederer are law partners in a New York limited liability partnership, Gursky &

Question:

Steven Gursky and Louis Ederer are law partners in a New York limited liability partnership, Gursky & Ederer LLP. Ederer withdraws from the LLP after a severe falling out with Gursky and because the LLP was cash-strapped and unprofitable. Ederer then sues Gursky for breaching the LLP agreement by failing to pay Ederer his 30 percent share of the LLP’s profits and other compensation that Ederer earned during the last months of the LLP. Gursky claims that he, as a partner in an LLP, had no liability to Ederer because partnership law in New York shields partners in an LLP from any personal liability. The New York trial court holds that New York law placing limits on the personal liability of partners in an LLP applies to debts of the partnership or the partners to third parties and has nothing to do with a partner’s duties to his partner. Was the court correct in holding this? Will the New York Appellate Division (the highest court in the state of New York) affirm or overrule this decision?

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

Question Posted: