News & Noteworthy

Authored - NJ Contract Law Update - Partner Liability Is 'Different'
OCTOBER 02, 2013 | Windels Marx - Commercial Litigation

American Imaging of Jersey Inc., v. Baldonado, __ N.J.Super. ____, 2013 WL 3762638 (App.Div. July 19, 2013), emphasizes that the liability of partners is 'different' from liability in other areas. So is suing them.

Broadly stated, partners are liable for underlying partnership debts, but only if partnership assets are insufficient to satisfy the judgment. For this reason, ordinary joinder and entire-controversy rules may not apply.

American Imaging is helpful in highlighting this issue; and in further explaining that the partners can seek contribution amongst themselves.

Contact & Legal Disclaimer

Clark Alpert is the author of Guide to New Jersey Contract Law, published by the New Jersey Institute for Continuing Legal Education, originally published in 2007 and updated in November 2011. His updates on New Jersey contract law are based in recent issues and practical methods for addressing similar situations in your practice or business. They are not intended to serve as legal advice. Clark welcomes your questions and comments.

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