LD 1609
pg. 70
Page 69 of 148 An Act To Establish the Uniform Partnership Act Page 71 of 148
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LR 1469
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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.

 
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.

 
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").

 
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.

 
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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