48-2a-1005 - Security and costs.
48-2a-1005. Security and costs.
In any action instituted in the right of any domestic or foreign limited partnership, unlessthe unreturned contributions to the partnership property of or allocable to the plaintiff amount to5% or more of the unreturned contributions of all limited partners, in their status as limitedpartners, or the unreturned contributions of or allocable to the plaintiff have a market value inexcess of $25,000, the limited partnership in whose right the action is brought shall be entitled, atany time before final judgment, to require the plaintiff to give security for the costs andreasonable expenses which may be directly attributable to and incurred by the limited partnershipin the defense of the action or may be incurred by other parties named as defendant for which thelimited partnership may become legally liable, but not including attorneys' fees. Market valueshall be determined as of the date that the plaintiff institutes the action or, in the case of anintervenor, as of the date that he becomes a party to the action. The amount and nature of thesecurity shall be determined by the court, and the amount of the security may from time to timebe increased or decreased, in the discretion of the court, upon showing that the security providedhas or may become inadequate or excessive. The limited partnership shall have recourse to thesecurity in the amount as the court having jurisdiction shall determine upon the termination ofsuch action if the court finds the action was brought without reasonable cause.
Amended by Chapter 189, 1991 General Session