Answer 1
Yes, Gold Dust can recover the compensation of $50,000 granted as per the judgment from
Bobby. However, it is crucial to note that the money can be recovered not from Bobby in his
capacity of a limited partner in Typecast but by the fact that he is the sole shareholder and
president of Live Magazine Inc., that in turn is the General Partner of Typecast Limited
Partnership.
Typecast Limited Partnership is a Limited Partnership. Limited Partnership is a unique form
of partnership wherein there are two types of partners with differing roles and liabilities. An
Limited partnership constitutes of general partner(s) and at least one limited partner. General
partners have the full management control of the business operations but also have unlimited
liability in case of the business’ default or debt. A limited Partner, at the other hand, is not
involved in the day-to-day operations of the business but is a partner by virtue of his
investments in the said business. A limited partner does not have unlimited liability and
his/her liability is restricted to the monetary value of the investments the limited partner has
made in the business. As in the case of Typecast itself, a limited partnership can have any
person or entity such as a company or corporation as a General Partner (Live Magazine in the
present case). This implies that Live Magazine being the general partner of Typecast Limited
Partnership is personally liable for the liability of the limited partnership to compensate in
accordance with the judgment.
As Bobby was the one acting as manager when dealing with Gold Dust Graphics and it is due
to his failure to perform the duties undertaken in the contract, that Gold Dust sued Typecast
and got a judgment in its favour. In the present case, Bobby is a limited partner in Typecast
and therefore is only liable to extent of his investment in the limited partnership as a limited
partner. However, Bobby is also is the single partner of Live Magazine, a general partner of
Typecast Limited Partnership and is therefore personally liable for the liabilities of Live
Magazine ( lifting the corporate veil of the corporation) as the corporation has insufficient
assets to satisfy the claims and therefore it is possible for Gold Dust Graphics to recover the
$50,000 awarded in the judgment from him.
