Nichols v. Emerson

Headnote

Partnership — action to impose liability for partnership debts upon estate of deceased limited partner — compromise by payment to trustee in bankruptcy of sum in settlement of all liability.

Nichols v. Emerson, 210 App. Div. 281 , affirmed.

Appeal, by permission, from a judgment of the Appellate Division of the Supreme Court in the third judicial department, entered September 20, 1924, unanimously affirming a judgment in favor of defendants entered upon a dismissal of the complaint by the court at a Trial Term without a jury. The action was to impose liability upon the estate of a limited partner, deceased, for debts of the firm, it having been adjudged bankrupt, because of failure to file the certificate of limited partnership in the county where a branch of the business was conducted and the indebtedness incurred. The Appellate Division held that plaintiff’s claim was compromised by the payment by defendants to the trustee in bankruptcy of an amount in settlement of the decedent’s liability, such settlement having been authorized by the Federal bankruptcy court which had jurisdiction of the parties including the plaintiff.