50-73.97 - Actions by and against partnership and partners. - Virginia Statutes

§ 50-73.97. Actions by and against partnership and partners.

A. A partnership may sue and be sued in the name of the partnership.

B. An action may be brought against the partnership and, except as providedin § 50-73.96, against any or all of the partners in the same action or inseparate actions.

C. A judgment against a partnership is not by itself a judgment against apartner. A judgment against a partnership may not be satisfied from apartner's assets unless there is also a judgment against the partner.

D. A judgment creditor of a partner may not levy execution against the assetsof the partner to satisfy a judgment based on a claim against the partnershipunless:

1. The claim is for a debt, obligation or liability for which the partner isliable as provided in § 50-73.96 and either:

a. A judgment based on the same claim has been obtained against thepartnership and a writ of execution on the judgment has been returnedunsatisfied in whole or in part;

b. The partnership is a debtor in bankruptcy;

c. The partner has agreed that the creditor need not exhaust partnershipassets; or

d. A court grants permission to the judgment creditor to levy executionagainst the assets of a partner based on a finding that partnership assetssubject to execution are clearly insufficient to satisfy the judgment, thatexhaustion of partnership assets is excessively burdensome, or that the grantof permission is an appropriate exercise of the court's equitable powers; or

2. Liability is imposed on the partner by law or contract independent of theexistence of the partnership.

E. This section applies to any partnership liability or obligation resultingfrom a representation by a partner or purported partner under § 50-73.98.

(1996, c. 292.)