Legal Question in Real Estate Law in California
can one partner sue another partner, on behalf of the partnership, for failing to pay an agreed rental on partnetship real ppty?
can one partner file an eviction action against another partner, on behalf of the partnership, for a partners failure to pay an agreed rental for partnetship ppty?
1 Answer from Attorneys
Yes. There was a time when partners could not sue one another without triggering a dissolution of the partnership, but all partnerships are now subject to the 1994 Revised Uniform Partnership Act, which provides (at Corporations Code section 16405(b) that a partner may maintain an action against the partnership or another partner for legal or equitable relief, with or without an accounting as to the partnership business, to (and then follows a fairly comprehensive list of grievances which I would think includes your situation). Also, CC 16405(a) allows the partnership to sue a partner.
In designing the pleadings of such a suit, the drafting attorney needs to be careful to:
1. Distinguish between causes of action that are brought in the name, and for the benefit, of an individual partner, and those (if any) that are brought derivatively by a partner on behalf of the partnership; and
2. Distinguish between his or her authority to represent the partnership vs. authority to represent a particular partner -- in other words, who is the client? (#1 and #2 are interrelated.)