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Subject Topic: LLP question (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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optimistCPA
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Posted: 27 Mar 2009 at 23:01 | IP Logged  

If Frank, a dentist who is a member of an limited liability partnership (LLP), negligently harms Kathy while attempting to complete a root canal, what is the personal liability of the other members of the LLP?

< =75 = value=0 name=question_47608> A) Only the supervising partner will be liable, if there is a supervising partner.
< =75 = value=1 name=question_47608> B) They will be liable only if Frank intended to harm Kathy.
< =75 = value=2 name=question_47608> C) If Frank was negligent, they are also liable.
< =75 = value=3 name=question_47608> D) None of them will be personally liable.
The answer is D. I think it should be A as supervising partner is liable for torts of subordinates who are under their direct control.
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soontobecpa
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Posted: 28 Mar 2009 at 01:02 | IP Logged  

A cannot be right either way because it says"only"
supervising partner will be liable,where as both the
dentist and his supervising partner would have unlimited
personal liability.

To me none of the answers look right,I would have gone
for an option where it said "frank has unlimited
liability for his own negligent wrong acts"

However,partners are not personally liable for the torts
of other partners.Difference is between a subordinate
and a partner.

Whats the explanation for the right answer?





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RR_CPA
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Posted: 28 Mar 2009 at 02:01 | IP Logged  

I would say Option D is correct answer for sure.... Becuase

Question says... Frank is negligent, .... what would be effect on other parnters?

Frank is already a member (partner or a head/superviosr), so only he should be personally liable but there will be no harm on other partners, as per LLP rule. (thats what i think)

hope make sense

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soontobecpa
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Posted: 28 Mar 2009 at 02:32 | IP Logged  

considering the question mentioned "effect on other
partners" D would be right.You are right rr_cpa.

I should have read the question more carefully!

Thanks a bunch!



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