Legal Question in Civil Litigation in Indiana

partnership partner debt liability not several or joint

Partner in now non-existant verbal partnership signed security interest and royalty agreement in behalf of partnership. he signed checks wrote check for substantial amount and left I paid 80% of money back personally as partner and was sued for the rest no mention of several or joint in agreement no promissory note never saw agreement or met creditor I never signed anything. other partners not sued and cannot be found I never worked in business the payment to creditor has left me destitute and have meagre comssission job and social security am defending pro se

have bench trial in coming up concerned about garnishing meagre income also would like possible defenses cannot afford attorney all partners (3) had autos and wages royalty on sales was to pay back the money very few sales made did not keep books either agreement refers to best efforts to repay have not car or house left after this and few personal items interest on remaining debt huge plaintiff attorney says I am personally and business liable as joint and several...have not seen his documentation though but have asked for it can he collect with no note or debenture? thanks for any help...ron


Asked on 3/07/04, 10:21 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: partnership partner debt liability not several or joint

Here are the facts the plaintiff has to prove to hold you liable: first, that a partnership existed; second that you were a member partner; third that the debt being sued for is a partnership debt. If all those things are proven, then you will be personally liable. However, the debts, even the judgment if he gets one against you, can be discharged in a bankruptcy case. I am sorry if you have been left holding the bag. You have a claim for contribution against the other partners, but if they have no assets, then you will have a not very valuable judgment. When you go to court -- if you can honestly do so -- try to help the judge understand that there was no partnership or you were not a member of the partnership or the debt was not a partnership debt. Good luck.

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Answered on 3/08/04, 7:42 pm


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