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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1614   View pdf image (33K)
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1614 PAETNERSHIPS——LIMITED. [ART. 73

violation by the partnership or by any individual partner shall be liable
as a general partner.
See note to sec. 15.

1904, art. 73, sec. 18. 1888, art. 73, sec. 18. 1860, art. 72, sec. 18.
1836, ch. 97, sec. 18.

18. In case of the insolvency or bankruptcy of the partnership no
special partner shall under any circumstances be allowed to claim as a
creditor until all the claims of all the other creditors of the partnership
shall be satisfied.

Ibid. sec. 19. 1888, art. 73, sec. 19. 1860, art. 72, sec. 19. 1836, ch. 97,
sec. 19. 1849, ch. 347, sec. 1.

19. All suits respecting the business of the partnership shall be
brought by and against the general partners only, except in those cases
in which provision is hereinbefore made that special partners shall be
deemed general partners and special partnerships general partnerships,
when all persons so becoming general partners may be joined with those
originally general partners in any suit brought against such partnership,
and except also the case provided for in section 11.

This section applies to suits brought while the partnership is a going con-
cern, and to suits brought after the dissolution but while the special partners'
contribution still forms part of the assets, or has been absorbed in paying
debts. Safe Deposit Co. v. Cahn, 102 Md. 547.
See sec. 11.

Ibid. sec. 20. 1888, art 73, sec. 20. 1860, art. 72, sec. 20.
1836, ch. 97, sec. 20.

20. If in any case a suit shall be brought against general and special
partners and at the trial of the cause it shall appear that the special
partners or any of them are not liable to the suit of the plaintiff the
court may proceed to judgment or decree against the partners who may
appear to be liable in the same manner as if such partners were the
only parties defendants to the writ, excepting that the partners who
may be deemed not liable shall recover their legal costs against the
plaintiff and such additional costs as the court may deem reasonable;
and if a creditor shall have recovered against the general partners only
and shall afterwards discover that the special partners have become
liable as general partners, he may file a bill in equity against the gen-
eral and special partners for further relief against them; and in such
proceeding the judgment recovered as aforesaid shall be prima facie evi-
dence of the amount due by the partnership as against the special
partners.

This section indicates that section 19 ought to be limited in its application
so as to include only such suits as are instituted during the existence of the
co-partnership, or during the time after its dissolution when the special
partner's contribution still forms part of the firm's assets in the hands of the
general partners. Safe Deposit Co. v. Cahn, 102 Md. 549.

 

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The Annotated Code of the Public Civil Laws of Maryland, 1911
Volume 372, Page 1614   View pdf image (33K)
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