SCOTX rules on limitations period against partners: American Star Energy and Minerals Corp. v. Stowers

Stew's Soapbox

Today, the Texas Supreme Court issued its opinion in American Star Energy and Minerals Corp. v. Stowers (no, not that Stowers) and held a limitations period against a partner generally does not commence until after a party obtains a final judgment against a partnership.

At first blush, this opinion strikes me as reaching something of an odd result. A party has the option under the Texas Revised Partnership Act of suing a partnership’s individual partners along with the partnership, but after this case, is there any practical reason to do so? The party can’t seek satisfaction of the partnership debt until the party obtains a judgment against the partnership. Plus, the party generally must give a partnership ninety days to satisfy a judgment before it can go after the partners and their assets. If that’s the case, why would the party sue the individual partners on the front end? I don’t see any real benefit unless the partner assumed…

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