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The Vermont Statutes Online
Title
11
:
Corporations, Partnerships and Associations
Chapter
022
:
PARTNERSHIPS
Subchapter
003
:
RELATIONS OF PARTNERS TO PERSONS DEALING WITH PARTNERSHIP
§
3227. Actions by and against partnership and partners
(a) A
partnership may sue and be sued in the name of the partnership.
(b) An action
may be brought against the partnership and, to the extent not inconsistent with
section 3226 of this title, any or all of the partners in the same action or in
separate actions.
(c) A judgment
against a partnership is not by itself a judgment against a partner. A judgment
against a partnership may not be satisfied from a partner's assets unless there
is also a judgment against the partner.
(d) A judgment
creditor of a partner may not levy execution against the assets of the partner
to satisfy a judgment based on a claim against the partnership unless the
partner is personally liable for the claim under section 3226 of this title and
either:
(1) a judgment
based on the same claim has been obtained against the partnership and a writ of
execution on the judgment has been returned unsatisfied in whole or in part;
(2) the
partnership is a debtor in bankruptcy;
(3) the partner
has agreed that the creditor need not exhaust partnership assets;
(4) a court
grants permission to the judgment creditor to levy execution against the assets
of a partner based on a finding that partnership assets subject to execution
are clearly insufficient to satisfy the judgment, that exhaustion of
partnership assets is excessively burdensome, or that the grant of permission
is an appropriate exercise of the court's equitable powers; or
(5) liability is
imposed on the partner by law or contract independent of the existence of the
partnership.
(e) This section
applies to any partnership liability or obligation resulting from a
representation by a partner or purported partner under section 3228 of this
title. (Added 1997, No. 149 (Adj. Sess.), § 1, eff. Jan. 1, 1999.)