Research Case
A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doctor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor’s very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four of these doctors formed this business as a general partnership. However, five years ago, the partners converted the business to a limited liability partnership based on the laws of the state in which they operate.
Required
Based on the facts presented in this case, answer these questions:
1.
What liability do the other six partners in this medical practice have in connection with this lawsuit?
2.
What factors will be important in determining the exact liability (if any) of these six doctors?
Solution Preview
The partnership in the case study involves limited liability partnerships. Under this partnership, the partners will be protected from liability if another partner commits a malpractice or make mistakes. Frequently, this kind of partnership is employed by people in the professional world.
(345 words)