Gateway Potato Sales v. G.B. Investment Co.
Court of Appeals of Arizona
822 P.2d 490 (1991)
Gateway (plaintiff) sold potato seeds to a limited partnership after being told by the general partner's president that limited partner G.B. Investment (defendant) had approved the deal and was a respected partner in the venture; Gateway never dealt with G.B. Investment directly but understood it to be actively controlling partnership operations. When the partnership failed to pay, Gateway sued, and evidence suggested G.B. Investment did participate in controlling the business; the trial court nonetheless granted G.B. Investment summary judgment because it had no direct dealings with Gateway.
Whether a limited partner may be held personally liable for a partnership debt without having had any direct dealings with the specific creditor.