State Codes and Statutes

Statutes > New-york > Ptr > Article-8-a > 121-1002

§ 121-1002. Limited partners' derivative action. (a) A limited partner  may  bring  an action in the right of a limited partnership to recover a  judgment in its favor if all general partners with authority  to  do  so  have  refused to bring the action or if an effort to cause those general  partners to bring the action is not likely to succeed.    (b) In a derivative action, at least one plaintiff must be  a  limited  partner  at  the  time of bringing the action and (i) at the time of the  transaction of which he complains, or  (ii)  his  status  as  a  limited  partner  had devolved upon him by operation of law or in accordance with  the terms of the partnership agreement from a person who was  a  partner  at the time of the transaction of which he complains.    (c)  In  a  derivative  action,  the  complaint  shall  set forth with  particularity the efforts of the plaintiff to secure the  initiation  of  such  action  by  a  general partner, or the reasons for not making such  effort.    (d) A derivative action shall  not  be  discontinued,  compromised  or  settled  without  the  approval  of the court having jurisdiction of the  action. If the court shall determine that the interests of  the  limited  partners   will   be  substantially  affected  by  such  discontinuance,  compromise or settlement, the court, in its discretion, may direct  that  notice,  by  publication  or  otherwise,  shall  be given to the limited  partners whose interests it determines will be so affected. If notice is  so directed to be given, the court may determine which one  or  more  of  the parties to the action shall bear the expenses of giving the same, in  such  amount  as  the court shall determine and find to be reasonable in  the circumstances, and the amount of such expense shall  be  awarded  as  special  costs  of  the  action  and  recoverable  in the same manner as  statutory taxable costs.    (e) If the derivative action on behalf of the limited  partnership  is  successful,  in  whole  or  in  part,  or if anything is received by the  plaintiff or plaintiffs or a claimant or claimants  as  a  result  of  a  judgment,  compromise or settlement of an action or claim, the court may  award the plaintiff or  plaintiffs,  claimant  or  claimants  reasonable  expenses,  including reasonable attorneys' fees, and shall direct him or  them to account to the limited partnership  for  the  remainder  of  the  proceeds so received by him or them. This subdivision shall not apply to  any  judgment  rendered for the benefit of injured limited partners only  and limited to a recovery of the loss or damage sustained by them.

State Codes and Statutes

Statutes > New-york > Ptr > Article-8-a > 121-1002

§ 121-1002. Limited partners' derivative action. (a) A limited partner  may  bring  an action in the right of a limited partnership to recover a  judgment in its favor if all general partners with authority  to  do  so  have  refused to bring the action or if an effort to cause those general  partners to bring the action is not likely to succeed.    (b) In a derivative action, at least one plaintiff must be  a  limited  partner  at  the  time of bringing the action and (i) at the time of the  transaction of which he complains, or  (ii)  his  status  as  a  limited  partner  had devolved upon him by operation of law or in accordance with  the terms of the partnership agreement from a person who was  a  partner  at the time of the transaction of which he complains.    (c)  In  a  derivative  action,  the  complaint  shall  set forth with  particularity the efforts of the plaintiff to secure the  initiation  of  such  action  by  a  general partner, or the reasons for not making such  effort.    (d) A derivative action shall  not  be  discontinued,  compromised  or  settled  without  the  approval  of the court having jurisdiction of the  action. If the court shall determine that the interests of  the  limited  partners   will   be  substantially  affected  by  such  discontinuance,  compromise or settlement, the court, in its discretion, may direct  that  notice,  by  publication  or  otherwise,  shall  be given to the limited  partners whose interests it determines will be so affected. If notice is  so directed to be given, the court may determine which one  or  more  of  the parties to the action shall bear the expenses of giving the same, in  such  amount  as  the court shall determine and find to be reasonable in  the circumstances, and the amount of such expense shall  be  awarded  as  special  costs  of  the  action  and  recoverable  in the same manner as  statutory taxable costs.    (e) If the derivative action on behalf of the limited  partnership  is  successful,  in  whole  or  in  part,  or if anything is received by the  plaintiff or plaintiffs or a claimant or claimants  as  a  result  of  a  judgment,  compromise or settlement of an action or claim, the court may  award the plaintiff or  plaintiffs,  claimant  or  claimants  reasonable  expenses,  including reasonable attorneys' fees, and shall direct him or  them to account to the limited partnership  for  the  remainder  of  the  proceeds so received by him or them. This subdivision shall not apply to  any  judgment  rendered for the benefit of injured limited partners only  and limited to a recovery of the loss or damage sustained by them.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Ptr > Article-8-a > 121-1002

§ 121-1002. Limited partners' derivative action. (a) A limited partner  may  bring  an action in the right of a limited partnership to recover a  judgment in its favor if all general partners with authority  to  do  so  have  refused to bring the action or if an effort to cause those general  partners to bring the action is not likely to succeed.    (b) In a derivative action, at least one plaintiff must be  a  limited  partner  at  the  time of bringing the action and (i) at the time of the  transaction of which he complains, or  (ii)  his  status  as  a  limited  partner  had devolved upon him by operation of law or in accordance with  the terms of the partnership agreement from a person who was  a  partner  at the time of the transaction of which he complains.    (c)  In  a  derivative  action,  the  complaint  shall  set forth with  particularity the efforts of the plaintiff to secure the  initiation  of  such  action  by  a  general partner, or the reasons for not making such  effort.    (d) A derivative action shall  not  be  discontinued,  compromised  or  settled  without  the  approval  of the court having jurisdiction of the  action. If the court shall determine that the interests of  the  limited  partners   will   be  substantially  affected  by  such  discontinuance,  compromise or settlement, the court, in its discretion, may direct  that  notice,  by  publication  or  otherwise,  shall  be given to the limited  partners whose interests it determines will be so affected. If notice is  so directed to be given, the court may determine which one  or  more  of  the parties to the action shall bear the expenses of giving the same, in  such  amount  as  the court shall determine and find to be reasonable in  the circumstances, and the amount of such expense shall  be  awarded  as  special  costs  of  the  action  and  recoverable  in the same manner as  statutory taxable costs.    (e) If the derivative action on behalf of the limited  partnership  is  successful,  in  whole  or  in  part,  or if anything is received by the  plaintiff or plaintiffs or a claimant or claimants  as  a  result  of  a  judgment,  compromise or settlement of an action or claim, the court may  award the plaintiff or  plaintiffs,  claimant  or  claimants  reasonable  expenses,  including reasonable attorneys' fees, and shall direct him or  them to account to the limited partnership  for  the  remainder  of  the  proceeds so received by him or them. This subdivision shall not apply to  any  judgment  rendered for the benefit of injured limited partners only  and limited to a recovery of the loss or damage sustained by them.