On November 21, 2016 Act 107 was adopted by the Pennsylvania legislature, effective February 21, 2017, adopting a new partnership act, a new limited partnership act, and a new limited liability company act (LLCs). In addition revisions were made to the laws governing limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs).
LLPs and LLLPs are widely used by legal, medical and other professionals. Of particular note for LLPs and LLLPs in the new legislation is the revision of Section 8204 of the Associations Code. In brief, under prior law a partner in an LLP or a general partner in an LLLP was not vicariously liable for the malpractice or other wrongful acts or misconduct of other partners but was personally liable for other obligations of the LLP or LLLP. Under the newly adopted legislation, partner liability will be essentially the same as member liability in LLCs and shareholder liability in corporations, i.e. complete limited liability with respect to partnership liabilities of any kind arising after the effective date, other than the partner’s own malpractice or other misconduct. Also, the nature of the liability of a partner for the malpractice or other wrongful acts of a lawyer or other person under the partner’s supervision and control has been modified. Is this a subject of interest to you?

By: Alan Molod