Opinion ID: 1395358
Heading Depth: 2
Heading Rank: 1

Heading: General Partner Status

Text: Sloan asserts that the evidence showed that Thornton signed a guaranty contract with a title company in a manner which indicated that Thornton was a general partner. Reasonable persons, Sloan argues, could determine that this document, along with Rawn's assignment of his interests in PSDC and KTDP to Thornton, established Thornton as a general partner liable for the partnership debts. Thus, Sloan concludes, a jury issue was presented regarding Thornton's status as a general partner. We disagree. Limited partnerships are governed by the Virginia Revised Uniform Limited Partnership Act, Code §§ 50-73.1 through -73.77. The Act provides that persons may be admitted as general partners of a limited partnership only in accordance with the provisions of the partnership agreement and that, when there is a change in the general partners, an amended certificate of limited partnership reflecting the addition or withdrawal of a general partner must be filed with the State Corporation Commission. Code §§ 50-73.12, -73.27. KTDP's partnership agreement provided, inter alia, that a person could become a general partner only if all general partners and 51 percent in interest of the limited partners consented. In addition, the partnership's counsel was required to issue an opinion stating that the new general partner was admitted in conformity with federal and state law. There is no evidence in this record that either the general partners or 51 percent of the limited partners consented to admitting Thornton as a general partner of KTDP, that the partnership's counsel issued an opinion that the transaction conformed with state and federal law, or that an amended certificate of partnership showing Thornton as a general partner of KTDP was filed with the State Corporation Commission. A finding that one is a general partner must be based on proof of the statutory elements required for such status. Introducing evidence which suggests only the trappings of general partner status cannot create a jury question regarding whether an individual is a general partner. In this case, the jury was instructed on the statutory requirements for the admission of a general partner. [2] Based on the record in the first trial, there is no evidence that any of the statutory requirements were met and, therefore, there is no credible evidence to support a finding by the jury that Thornton was a general partner of KTDP.