The case under review is concerned with the partnership liability of seven doctors, one of whom has been sued for causing his patient’s death due to poor judgment. The seven doctors were partners within the CPA firm of Harston and Mendez, which became the defendant in the case. However, since they turned their business into a limited liability partnership (LLP), only the guilty doctor should be liable for the malpractice.
One of the major characteristics of LLP is that “one partner is not responsible for the negligent acts committed by another partner or by the employees not under that partner’s supervision” (Utah Department of Commerce). Partners in LLP have their shares in the company, but they do not share liability for other partners’ errors (Utah Department of Commerce). Therefore, six other doctors in the presented case have no personal liability in this lawsuit.
Since the entire practice was named as a defendant, the assets of the partnership may become the target of the lawsuit. The benefit of LLP is that it protects the individual assets of partners in case of lawsuits (Prakash). It means that if one of the partners is sued because of malpractice, or the entire partnership becomes a defendant, then innocent partners do not have personal liability and keep their personal assets intact (Prakash). Therefore, although partnership assets may be targeted by the lawsuit along with the assets of the guilty doctor, the other six partners will preserve their money.
In order to determine the exact liability of the six doctors, it is necessary to prove that they neither these doctors nor employees under their supervision were involved in the situation that led to the patient’s death. It may also be important to find out whether the patient was assigned to the guilty doctor or the entire medical practice. If the doctor was solely responsible for treating the patient, the other six doctors are unlikely to be liable.
Works Cited
Utah Department of Commerce, Division of Corporations and Commercial Code. “Limited Liability Partnership.” Utah. 2017. Web.
Prakash, Priyanka. “Limited Liability Partnership: What Is an LLP and How to Form One.” Fundera. 2020. Web.