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debtors on every partnership debt. It is already the law in some | | States. |
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| | | As a general rule, a final judgment against a partner cannot | | be enforced by a creditor against the partner's separate assets | | unless a writ of execution against the partnership has been | | returned unsatisfied. Under subsection (d), however, a creditor | | may proceed directly against the partner's assets if (i) the | | partnership is a debtor in bankruptcy (see Section 101(2)); (ii) | | the partner has consented; or (iii) the liability is imposed on | | the partner independently of the partnership. For example, a | | judgment creditor may proceed directly against the assets of a | | partner who is liable independently as the primary tortfeasor, | | but must exhaust the partnership's assets before proceeding | | against the separate assets of the other partners who are liable | | only as partners. |
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| | | There is also a judicial override provision in subsection | | (d)(4). A court may authorize execution against the partner's | | assets on the grounds that (i) the partnership's assets are | | clearly insufficient; (ii) exhaustion of the partnership's assets | | would be excessively burdensome; or (iii) it is otherwise | | equitable to do so. For example, if the partners who are parties | | to the action have assets located in the forum State, but the | | partnership does not, a court might find that exhaustion of the | | partnership's assets would be excessively burdensome. |
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| | | 5. Although subsection (d) is silent with respect to pre- | | judgment remedies, the law of pre-judgment remedies already | | adequately embodies the principle that partnership assets should | | be exhausted before partners' assets are attached or garnished. | | Attachment, for example, typically requires a showing that the | | partnership's assets are being secreted or fraudulently | | transferred or are otherwise inadequate to satisfy the | | plaintiff's claim. A showing of some exigent circumstance may | | also be required to satisfy due process. See Connecticut v. | | Doehr, 501 U.S. 1, 16 (1991). |
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| | | 6. Subsection (e) clarifies that actions against the | | partnership under Section 308, involving representations by | | partners or purported partners, are subject to Section 307. |
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| | | §1036.__Liability of purported partner |
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| | | 1.__Liability of purported partner.__If a person, by words or | | conduct, purports to be a partner, or consents to being | | represented by another as a partner, in a partnership or with one | | or more persons not partners, the purported partner is liable to | | a person to whom the representation is made, if that person, | | relying on the representation, enters into a transaction with the |
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