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maintain an action against a partner for any breach of the | partnership agreement or for the violation of any duty owed to the | partnership, such as a breach of fiduciary duty. |
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| | 2. Section 405(b) is the successor to UPA Section 22, but | with significant changes. At common law, an accounting was | generally not available before dissolution. That was modified by | UPA Section 22 which specifies certain circumstances in which an | accounting action is available without requiring a partner to | dissolve the partnership. Section 405(b) goes far beyond the UPA | rule. It provides that, during the term of the partnership, | partners may maintain a variety of legal or equitable actions, | including an action for an accounting, as well as a final action | for an accounting upon dissolution and winding up. It reflects a | new policy choice that partners should have access to the courts | during the term of the partnership to resolve claims against the | partnership and the other partners, leaving broad judicial | discretion to fashion appropriate remedies. |
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| | Under RUPA, an accounting is not a prerequisite to the | availability of the other remedies a partner may have against the | partnership or the other partners. That change reflects the | increased willingness courts have shown to grant relief without | the requirement of an accounting, in derogation of the so-called | "exclusivity rule." See, e.g., Farney v. Hauser, 109 Kan. 75, | 79, 198 Pac. 178, 180 (1921) ("[For] all practical purposes a | partnership may be considered as a business entity"); Auld v. | Estridge, 86 Misc. 2d 895, 901, 382 N.Y.S.2d 897, 901 (1976) ("No | purpose of justice is served by delaying the resolution here on | empty procedural grounds"). |
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| | Under subsection (b), a partner may bring a direct suit | against the partnership or another partner for almost any cause | of action arising out of the conduct of the partnership business. | That eliminates the present procedural barriers to suits between | partners filed independently of an accounting action. In | addition to a formal account, the court may grant any other | appropriate legal or equitable remedy. Since general partners | are not passive investors like limited partners, RUPA does not | authorize derivative actions, as does RULPA Section 1001. |
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| | Subsection (b)(3) makes it clear that a partner may recover | against the partnership and the other partners for personal | injuries or damage to the property of the partner caused by | another partner. See, e.g., Duffy v. Piazza Construction Co., | 815 P.2d 267 (Wash. App. 1991); Smith v. Hensley, 354 S.W.2d 744 | (Ky. App.). One partner's negligence is not imputed to bar | another partner's action. See, e.g., Reeves v. Harmon, 475 P.2d | 400 (Okla. 1970); Eagle Star Ins. Co. v. Bean, 134 F.2d 755 (9th | Cir. 1943) (fire | insurance company not subrogated to claim |
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