Personal Liability in Limited Liability Partnerships
Ernie and Ellis operate an engineering firm structured as a limited liability partnership, with each partner initially investing $20,000. Ernie recently provided negligent advice that led to the construction of a large office building on a known geological fault. Consequently, the firm was sued and is now subject to a $1,000,000 court judgment. Ernie can be held personally liable for:
AUp to $20,000
BThe full $1,000,000
CUp to half of the judgment, or $500,000
DNone of the judgment
EOnly the amount directly attributable to his negligent advice
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