Court Opinion

ID: 9678368
Source: CourtListenerOpinion
Date Created: 2023-08-24 06:18:10.966974+00
Date Added: 2024-06-11T18:17:03.955651
License: Public Domain

V. J. Brennan, J.
(dissenting). I respectfully *796dissent. I am unpersuaded that, under Michigan law as presently existing, plaintiffs have a common-law right to assert a derivative action. Therefore, I would affirm the lower court’s order dismissing their derivative claims made on behalf of the partnership and leave the plaintiffs to pursue their individual claims.
A limited partnership is a creature of statute, and, as such, the rights and privileges of limited partners, as well as the limitation thereof, must be found in the Michigan Uniform Limited Partnership Act. MCL 449.201 et seq.; MSA 20.51 et seq.
It is unquestioned that the act does not have provisions which authorize a limited partner to bring a derivative action. Rather the rights of a limited partner are those expressly enumerated in § 101 and the limitations on bringing suit are those set forth in § 26.2 MCL 449.210; MSA 20.60, MCL 449.226; MSA 20.76.
Michigan has long and consistently adhered to the rule that where a statute creates an entity, grants to it express enumerated powers, and prescribes the mode of their excercise the courts cannot imply or confer additional powers. Sebewaing Industries, Inc v Village of Sebewaing, 337 *797Mich 530, 544-546; 60 NW2d 444 (1953). Powers specifically conferred by statute cannot be extended by inference; the only proper inference being that it was intended by the Legislature that no other or greater powers were given than those which the statute specified. Eikhoff v Charter Comm of the City of Detroit, 176 Mich 535, 540; 142 NW 746 (1913). The power to bring a derivative suit contended for by plaintiffs not having been expressly granted, whereas other powers are affirmatively enumerated, cannot be conferred by judicial legislation.
In light of the foregoing rationale, I am unconvinced by the lead opinion’s attempt to go beyond the statutory parameters of the Uniform Limited Partnership Act to find a common-law right to bring a derivative action by analogizing to rights accorded corporate shareholders and cestuis que trust. Limited partnerships are not amorphous but are definite legal entities created by statute. Such analogies simply are not applicable to provide powers not expressly granted by the Legislature regardless of our own notions of policy or equity. It is indeed significant to note that the Michigan Legislature has conferred statutorily the right to bring derivative actions to shareholders of Michigan corporations. MCL 450.1491; MSA 21.200(491). Such a specific conferment to corporate shareholders not only indicates that the Legislature was fully aware of derivative rights but further underscores the intent of the Legislature not to provide such rights to limited partners. Moreover, the Michigan Legislature in enacting the corporate shareholder derivative provision has demonstrated its intent that such a right must be granted by statute to a statutory creature such as a corporation or a limited partnership.
*798My conclusion that permitting derivative actions by limited partners is an act of judicial legislation is buttressed by the fact that the recently published Michigan Law Revision Commission, Fifteenth Annual Report (1980) recommends a Revised Uniform Limited Partnership Act for Michigan which specifically would include, for the first time, the right of a limited partner to bring a derivative action on behalf of the limited partnership.
The reason for the recommended provision, Article 10, is explained in the Reporter’s Commentary at page 75 of the 1980 Report. The Commentary states:
"There is nothing in the Existing Act that authorizes a derivative action by limited partners.”
Accordingly, the Michigan Law Revision Commission is recommending that the Michigan Uniform Limited Partnership Act be amended to authorize derivative actions by limited partners.
The above recommendation affirms my position that a limited partner currently, as the law presently exists, cannot bring a derivative action on behalf of a limited partnership in Michigan. A limited partnership is a creature of statute, and the Michigan statute does not now authorize derivative action. If it did, the Michigan Law Revision Commission would not need to recommend a specific, new provision for derivative action.
At this juncture, for this Court to recognize a right to bring a derivative action, where the Legislature has not done so in the past and is presently considering the wisdom of so doing in the future, is inappropriate. The particular facts of the instant case neither present a danger of substantial *799injustice nor advance any compelling policy considerations which favor the assertion of the claim. The record is undisputed that the majority of the limited partners have expressly waived or released any right to pursue such an action. Until the Legislature acts to recognize a derivative suit, I decline to so do.

 "Rights of a limited partner. Sec. 10. (1) A limited partner shall have the same rights as a general partner to
"(a) Have the partnership books kept at the principal place of business of the partnership, and at all times to inspect and copy any of them,
"(b) Have on demand true and full information of all things affecting the partnership, and a formal account of partnership affairs whenever circumstances render it just and reasonable, and
"(c) Have dissolution and winding up by decree of court.
"(2) A limited partner shall have the right to receive a share of the profits or other compensation by way of income, and to the return of his contribution as provided in sections fifteen [15] and sixteen [16].”

 "Parties to actions. Sec. 26. A contributor, unless he is a general partner, is not a proper party to proceedings by or against a partnership, except where the object is to enforce a limited partner’s right against or liability to the partnership.”