CASE SUMMARY 14. 4 First American Title V. Lawson , 827 A. 201 230 ( N. J. 2003 ) LLP INNOCENT PARTNERS Wheeler, Lawson , and Snyder formed an LLP for their law practice . Wheeler was the managing partner for the LLP and oversaw the firm's business affairs , including malpractice insurance coverage . When applying to First American Title for the firm's malpractice insurance , Wheeler made a material misrepresentation on the insurance application . Both Wheeler* and Lawson engaged in unethical and illegal conduct by failing to properly' administer client trust funds and using the funds for their own benefit. Snyder was located at a separate office and had little contact with his partners and no knowledge of their misrepresentations or illegal conduct . Eventually , the firm was sued for malpractice and damages by various clients . First American Title paid out several claims and then sought recovery from each of the partners and canceled their policy based on the misrepresentation by Wheeler . Snyder argued that he should not be liable for the negligent or intentional acts of his partners . CASE QUESTIONS 1 . Does the LLP shield protect Snyder's personal assets from negligence committed by other partners ? 2. Should Snyder have been more active in regard to being aware of his partners " deeds ? Did he have a duty to inquire ?"