Legal Question in Business Law in California

Re: Partnership dissolution

A. Yes, you are most likely responsible. (Though the eight-year period you mentioned may make the claim stale by now.) Presumably the gas company's contract was with the partnership and not with your partner as an individual. This means that any member of the partnership was responsible for the bill if the partnership itself failed to pay. The gas company never agreed to let you off the hook and is not obligated to do so. The agreement you have with your partner does not require the company to forego a debt which it is legally entitled to collect.

B. Taking a charge-off is an internal bookkeeping matter without much legal significance. The company may need to correct its books to reflect the receipt of these funds, but its legal rights are most likely intact despite taking the chargeoff.

Sorry I can't offer more encouragement here.

Re: Partnership dissolution

Yes and Yes!

What you should have done was create an agreement which provided he would hold you harmless for any failure on his part to perform. That would leave you with a lawsuit against him, although he probably would have discharged that debt in bankruptcy as well. Sorry, your stuck!

Re: Partnership dissolution

Although you are technically liable because you were a partner of the general partnership, the eight-years-plus age of the indebtedness may give you a defense based on the statute of limitations. Have a lawyer review all the facts in person, then you may be able to just tell the gas company their claim is uncollectable.