What can we do if we are being sued for personal injury? 3 Answers as of June 22, 2011My friend and I both own a business together. 50% interest in the partnership. I paid 10% down and she put 90%. I manage it. A girl fell outside of our place and we are now being sued by her mother. My friend had me sign an agreement limiting my liability. We go to litigation in a few days. Is there anything else we can or should do and will that agreement hold in court?
Law Offices of Steven A. Fink | Steven Alan Fink
The agreement you signed with your friend will not help at all in the lawsuit by the girl's mother. As a partner you are completely liable for partnership liabilities. However, if you pay more than your agreed upon share based on the limitation of liability agreement, you can get that amount back from your partner. Have you submitted claim to your insurance? This is why partnerships are not best business form. If your business was incorporated you would have no personal liability at all.
Answer Applies to: California