Opinion ID: 754135
Heading Depth: 2
Heading Rank: 2

Heading: New York Partnership Law

Text: 27 Under Article 8 of New York Partnership Law, which governs limited partnerships, a general partner of a limited partnership shall have all the rights and powers and be subject to all the restrictions and liabilities of a partner in a partnership without limited partners. N.Y. Partnership Law § 98(1) (McKinney 1988). The National Partnership defendants, therefore, are entitled to an accounting as provided for general partnerships under New York law. That law provides four circumstances where a partner has a right to an accounting of partnership affairs. One circumstance is simply [a]s provided by section forty-three, N.Y. Partnership Law § 44(3) (McKinney 1988), which in pertinent part states 28 Every partner must account to the partnership for any benefit, and hold as trustee for it any profits derived by him without the consent of the other partners from any transaction connected with the formation, conduct, or liquidation of the partnership or from any use by him of its property. 29 N.Y. Partnership Law § 43(1) (McKinney 1988). 30 Defendants seek an accounting in their amended counterclaim for breach of fiduciary duty within the meaning of § 3.02(b) of the Academy and Buckingham partnership agreements. Section 3.02(b) requires the general partners to exercise their responsibilities in a fiduciary capacity. Since the just-cited § 43 is entitled Partner accountable as a fiduciary, it plainly applies in this case and would be an appropriate starting point for determining whether the National Partnership is entitled to an accounting. 31