Question
Ann, Bob, and Carla form a limited liability accounting partnership. Carla is careless with a client's accounts and causes a loss. The client sues the
Ann, Bob, and Carla form a limited liability accounting partnership. Carla is careless with a client's accounts and causes a loss. The client sues the LLP for negligence and wins. The insurance coverage and other assets of the LLP are not large enough to cover the damages. Who is responsible for the damages that exceed the assets of the LLP?
a.) All three partners. Otherwise, it would be unfair to the judgment holder,
b.) No one. Since this is a limited liability partnership, the only items available to pay judgments are the assets of the LLP.
c.) All three partners. All partners are liable for torts committed during the course of the LLP's business.
d.) Carla. A limited liability partner is personally responsible for her own negligent acts once the assets of the LLP have been fully applied against the loss.
e.) No one. Since Carla's acts were not intentional, she cannot be held personally liable and the other partners' liabilities are limited to the partnership assets.
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