3.__Judgment against partnership; partner.__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.

4.__Execution against assets of partner.__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 1034 and:

A.__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;

B.__The partnership is a debtor in bankruptcy;

C.__The partner has agreed that the creditor need not exhaust partnership assets;

D.__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

E.__Liability is imposed on the partner by law or contract independent of the existence of the partnership.

5.__Application to partnership liability or obligation.__This section applies to any partnership liability or obligation resulting from a representation by a partner or purported partner under section 1036.

Comment

(This is Section 307 of the Uniform Partnership Act (1997).)

1. Section 307 is new. Subsection (a) provides that a partnership may sue and be sued in the partnership name. That entity approach is designed to simplify suits by and against a partnership.