Holzman v. De Escamilla case brief

Holzman v. De Escamilla case brief summary
195 P.2d 833 (1948)

CASE SYNOPSIS

Appellants challenged a judgment of the Superior Court of San Diego County (California), which decreed they were general partners in a limited partnership, and as such were liable as general partners to the creditors of the partnership.

CASE FACTS
Appellants challenged a judgment decreeing they were general partners in a limited partnership, and as such were liable as general partners to the creditors of the partnership.

DISCUSSION

• The court affirmed. 
• The court held that evidence clearly established that appellants took part in the control of the business of the partnership and thus became liable as general partners.

CONCLUSION
The court affirmed the judgment against appellants because evidence clearly established that appellants took part in the control of the business of the partnership and thus became liable as general partners.



NOTES
A partner can be considered a general partner in an LP if:
o Name is on certificate
o Represents himself as liable
o Takes part in management
In this case, the “limited partners” were clearly involved in the management and thus
should be treated as general partners. They could overrule general partner’s choice of
crops to plant and had a direct role in finances.