Tex. Bus. Orgs. Code § 153.102

LIABILITY TO THIRD PARTIES

Applied in 3 court decisions — leading case Reid Road Municipal Utility District No. 2 v. Speedy Stop Food Stores, Ltd. (2011)

Most recently applied in 614 F. App'x 876 - Volvo Construction Equipment Rents, Inc. v. NRL Rentals, LLC (June 2015)

Acts 2003, 78th Leg., ch. 182, Sec. 1, eff

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) A limited partner is not liable for the obligations of a limited partnership unless:

(1) the limited partner is also a general partner; or

(2) in addition to the exercise of the limited partner's rights and powers as a limited partner, the limited partner participates in the control of the business.

(b) If the limited partner participates in the control of the business, the limited partner is liable only to a person who transacts business with the limited partnership reasonably believing, based on the limited partner's conduct, that the limited partner is a general partner.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.