Antonic Rigging & Erecting of Missouri, Inc. v. Foundry East Limited Partnership

In Antonic Rigging & Erecting of Missouri, Inc. v. Foundry East Limited Partnership, 773 F. Supp. 420 (S.D.Ga.1991), the court noted that in adopting its current version of the limited partnership statute, Georgia had specifically renounced the proposition that, "a limited partner may be held liable as a general partner for participating in the control of a limited partnership's business." Id. at 431. The court quoted the report of the Joint Legislative Committee which had produced the new statute and which had pointed out that, "Under most modern limited partnership statutes, the "control" rule has been diminished to the point where there is no liability for participation in control without creditor reliance, and an extensive "safe harbor" is usually provided. Even so, uncertainty as to the degree of control which can trigger liability creates significant disincentive to limited partnership investments, and accordingly the proposed new law eliminates the control test." (Ibid.)