Limited Partnership Issues Addressed
In Hillman v. Hillman, 2006 WL 2434231 (Del.Ch., Aug 23, 2006), read revised opinion of November 2006 here, the Delaware Chancery Court addressed many issues related to the status of a former general partner who claimed that he had an option to retain a 1% limited partnership interest. After a thorough analysis of the facts and the multi-faceted legal issues, the Court concluded that he did not have the right to retain an L.P. interest but that his remaining 1% of capital would be liquidated. The court concluded also that he did not have standing to assert claims against the remaining members. In support of the right to liquidate his interest, the court also referred to the equitable maxim that: "equity abhors a forfeiture".
Much more could be written about this opinion and I may write more later, but other pressing business will limit this to a short highlight of the key issue.
