§3227. Actions by and against partnership and partners

Link to law: http://legislature.vermont.gov/statutes/section/11/022/03227
Published: 2015

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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.)
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