Partnership Property, Creditors

One of the benefits of a limited partnership is to protect against liabilities. A partner’s individual creditors cannot attach or encumber partnership property to satisfy a partner’s individual debt. Section 358.250, RSMo; Anchor Centre Partners, Ltd. v. Mercantile Bank, N.A., 803 S.W.23, 31 (Mo. 1991). This flows from a partner’s inability to assign his or her rights in specific partnership property. Accordingly, partnership property is typically only reachable by partnership creditors.
A “charging order” is somewhat of an exception to this rule. A charging order is “a post-judgment remedy that allows the judgment creditor of an individual debtor-member of a limited liability company (or a partnership) to enforce a judgment by charging the individual member’s distributional interest with the unsatisfied amount of a judgment.” Regions Bank v. Alverne Associates, LLC, 456 S.W.3d 52, 56 (Mo. Ct. App. 2014).
Contact with questions.

Related Articles

Customers re: Non-Compete Agreements

April 10, 2024

Missouri will honor non-compete agreements so long as they are “demonstratively reasonable.” Whelan Sec. Co. v. Kennebrew, 379 S.W.3d 835, 841 (Mo. 2012). In other words, a non-compete agreement is enforceable “only to the extent that the restrictions protect the employer’s trade secrets or customer contacts.” Id. at 842. The employer generally has the responsibility to…

Read More

Contracts Shortening The Statute of Limitations

April 2, 2024

Contracts may contain all sorts of provisions that are agreed upon by the parties. But there are limits created by courts and legislatures. For example, to avoid bypassing the statute of limitations, contractual provisions which shorten the time to file a lawsuit are generally void. Section 431.030, RSMo, in no uncertain terms provides: “[a]ll parts…

Read More

Judicial Admissions

March 17, 2024

The central purpose of any trial is to determine what factually occurred and to determine who wins under the law based on those factual determinations. In litigation, a “judicial admission” is any act “done in the course of judicial proceedings that concedes for the purpose of litigation that a certain proposition is true.” Moore Automotive…

Read More

Types of Conversion, Personal Property Misuse

February 24, 2024

Conversion is the civil claim pertaining to misuse of another’s personal property. It is the “intentional exercise of dominion or control over [personal property] which so seriously interferes with the right of another to control it that the [wrongdoer] may justly be required to pay” for the value of the property. Breece v. Jett, 556…

Read More
Scroll to Top