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Ederer v. Gursky
New York Court of Appeals
881 N.E.2d 204 (2007)
Louis Ederer (plaintiff), an attorney, joined the law firm of Steven Gursky (defendant). The firm began as Gursky and Ederer, P.C. (the PC) and eventually became a limited liability partnership called Gursky and Ederer, LLP (the LLP). The LLP consisted of Gursky, Ederer, and three other attorneys. They did not create a written partnership agreement. During his time with the law firm, Ederer entered into various financial agreements with the PC and LLP. Among other arrangements, the LLP agreed to repay a personal loan Ederer made to the PC. When Ederer decided to leave the firm in June 2003, he entered into a withdrawal agreement, which promised him a set level of compensation for the rest of the year. In December 2003, Ederer sued the PC, the LLP, Gursky, and the three other partners for breach of contract relating to the withdrawal agreement and personal loan debt. The individual defendants moved to dismiss the complaint as to them, arguing that the limited liability partnership entity shielded partners from personal liability. The trial court denied the motion to dismiss, and the Appellate Division affirmed.
Rule of Law
Holding and Reasoning (Read, J.)
Dissent (Smith, J.)
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