A client of the CPA firm of Harston and Mendez is a medical practice of seven local
Question:
A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doc¬ tor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor's very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four ofthese doctors formed this business as a general partnership. However, five years ago, the partners converted the busi¬ ness to a limited liability partnership based on the laws of the state in which they operate.
Read the following articles as well as any other published information that is available on partner and partnership liability:
“Partners Forever, Within Andersen, Personal Liability May Bring Ruin,” The Wall Street Journal, April 2, 2002, p. Cl.
“Collapse: Speed ofAndersen’s Demise Amazing,” Milwaukee Journal Sentinel, June 16, 2002, p. D1.
Required LO6 Based on the facts presented in this case, answer these questions:
1. What liability do the other six partners in this medical practice have in connection with this lawsuit?
2. What factors will be important in determining the exact liability (if any) of these six doctors?
Step by Step Answer:
Advanced Accounting
ISBN: 9780073379456
9th Edition
Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle