Current through 2024 Legislative Session
Section 45-10.2-41 - (405) Actions by and against partnership and partners1. To the extent not inconsistent with section 45-10.2-40, a general partner may be joined in an action against the limited partnership or named in a separate action.2. A judgment against a limited partnership is not by itself a judgment against a general partner. A judgment against a limited partnership may not be satisfied from assets of a general partner unless there is also a judgment against the general partner.3. A judgment creditor of a general partner may not levy execution against the assets of the general partner to satisfy a judgment based on a claim against the limited partnership, unless the partner is personally liable for the claim under section 45-10.2-40, and: a. A judgment based on the same claim has been obtained against the limited partnership and a writ of execution on the judgment has been returned unsatisfied in whole or in part;b. The limited partnership is a debtor in bankruptcy;c. The general partner has agreed that the creditor need not exhaust limited partnership assets;d. A court grants permission to the judgment creditor to levy execution against the assets of a general partner based on a finding:(1) That limited partnership assets subject to execution are clearly insufficient to satisfy the judgment;(2) That exhaustion of limited partnership assets is excessively burdensome; or(3) That the grant of permission is an appropriate exercise of equitable powers of the court; ore. Liability is imposed on the general partner by law or contract independent of the existence of the limited partnership.