A client of the CPA firm of Harston and Mendez is a medical practice of seven local doctors. One doctor has been sued for several million dollars as the result of a recent operation. Because of what appears to be this doctor’s very poor judgment, a patient died. Although that doctor was solely involved with the patient in question, the lawsuit names the entire practice as a defendant. Originally, four of these doctors formed this business as a general partnership. However, five years ago, the partners converted the business to a limited liability partnership based on the laws of the state in which they operate.
Based on the facts presented in this case, answer these questions:
- What liability do the other six partners in this medical practice have in connection with this lawsuit?
- What factors will be important in determining the exact liability (if any) of these six doctors?