Limited Liability Partnership

LIMITED LIABILITY PARTNERSHIPS - LEGAL COUNSEL

A limited liability partnership is another variant of the general partnership, which is available to certain eligible professions, that provides a degree of liability protection to the partners in that they will "not [be] individually liable, directly or indirectly by means of indemnification, contribution, assessment or otherwise, for debts, obligations or liabilities of the partnership or another partner that arise from the negligence, wrongful acts or omissions, malpractice or misconduct of (a) another partner, or (b) an employee, agent or representative of the partnership that occur in the ordinary course of of carrying on practice in an eligible profession while the partnership is an Alberta LLP." [section 12, Partnership Act (Alberta) R.S.A. 2000, c. P-3, see comparable variant in subsection 10(2) in the Partnership Act (Ontario) R.S.O. 1990, c. P.5]

The purpose of the limited liability partnership is to permit such professionals to operate in tandem with one another, such that the synergies available through collaboration and a larger coordination of individuals will be beneficial to the professionals and their clients alike. At the same time, given the specific nature associated with the work undertaken by these professionals and the potential that one or a small number of them may be responsible for the occurence of certain liability, it had been determined by the government and their respective professional societies (governing bodies), that all the professionals partaking in the LLP should not be responsible for such professional liability when they had absolutely no role in its transgression (and this is absolute critical to their being able to avoid liability)..

For legal counsel as to your business partnership or joint venture, contact lawyer Christopher Neufeld with Neufeld Legal Professional Corporation at Chris@NeufeldLegal.com or 403-400-4092 (Calgary, Alberta) 416-887-9702 (Toronto, Ontario).