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ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships

Tomas is a member of an LLP. He gives negligent advice to a client in the course of the LLP's business. The LLP is insolvent and cannot pay damages. Which statement is most accurate regarding liability of Tomas's fellow members, who were not involved?

The uninvolved members are generally not personally liable for Tomas's negligence, because LLP members have limited liability. Tomas can still be personally liable for his own wrongful act, whereas joint liability for a colleague's wrongs is a feature of ordinary partnerships.

  1. AThey are personally liable for the full damages because members are jointly liable as in a general partnership
  2. BThey are generally not personally liable for Tomas's negligence, though Tomas may be personally liable for his own wrongful actCorrect
  3. CThey are liable only if they have contributed more than Tomas

Explanation

Because the LLP is a separate entity with limited member liability, innocent members are not personally liable for a colleague's negligence. The negligent member remains liable for his own tort. Joint liability for others' wrongs is a feature of general partnerships, not LLPs.

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