486A.602 - PARTNER'S POWER TO DISSOCIATE -- WRONGFUL DISSOCIATION.
486A.602 PARTNER'S POWER TO DISSOCIATE -- WRONGFUL DISSOCIATION. 1. A partner has the power to dissociate at any time, rightfully or wrongfully, by express will pursuant to section 486A.601, subsection 1. 2. A partner's dissociation is wrongful only if any of the following applies: a. It is in breach of an express provision of the partnership agreement. b. In the case of a partnership for a definite term or particular undertaking, before the expiration of the term or the completion of the undertaking if any of the following occur: (1) The partner withdraws by express will, unless the withdrawal follows within ninety days after another partner's dissociation by death or otherwise under section 486A.601, subsections 6 through 10, or wrongful dissociation under this subsection. (2) The partner is expelled by judicial determination under section 486A.601, subsection 5. (3) The partner is dissociated by becoming a debtor in bankruptcy. (4) In the case of a partner who is not an individual, trust other than a business trust, or estate, the partner is expelled or otherwise dissociated because it willfully dissolved or terminated. 3. A partner who wrongfully dissociates is liable to the partnership and to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the partner to the partnership or to the other partners.
Section History: Recent Form 98 Acts, ch 1201, §31, 79, 82 Referred to in § 486A.103, 486A.701, 486A.801