Ederer v. Gursky
Court of Appeals of New York
881 N.E.2d 204 (2007)
Louis Ederer (plaintiff), an attorney at a firm that evolved from a professional corporation into a limited liability partnership (LLP) with Gursky and three others, had various financial arrangements with the firm, including the LLP's promise to repay his personal loan and a withdrawal agreement guaranteeing set compensation after he left in 2003. When Ederer sued the firm entities and individual partners (defendants) for breaching those agreements, the partners moved to dismiss the claims against them personally, arguing the LLP structure shielded them from personal liability.
Whether partners in a limited liability partnership are shielded from personal liability stemming from partnership debts owed to other partners.