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Does Texas Hold a Partner Liable for a Partnership Debt? (Part I)

On Behalf of | Aug 30, 2017 | Partnerships, Personal Liability

You might have seen in our previous blog series on general partnership, where we talked about what general partnership is and why it is vital for business owners to know about it.  In essence, we wrote that, despite the advent of limited liability companies (LLCs), business owners frequently form a general partnership, oftentimes without even realizing it.  Generally, partners in a general partnership are jointly and severally liable, and each partner is personally and individually liable for the entire amount of all partnership obligations.  For example, if your partnership owes an amount to a third party supplier, you, along with the other individual partner(s), would be personally liable if the partnership fails to pay the third party supplier– whether you intended to be a partner or whether you knew you were exposed to such liability.

How does a partner in a general partnership become responsible for partnership debts? The case of American Star Energy and Minerals Corporation v. Stowers [1] is an example under Texas law of where a creditor pursued legal action against the individual partners of a partnership for a partnership debt. We will talk more about this case in more details in our next blog.

This post was part of a multi-part series on applying a partner’s liability for a partnership debt.  You can find the other posts by searching our blogs at


[1] Am. Star Energy & Minerals Corp. v. Stowers, No. 13-0484 (Tex. Oct. 14, 2014).  Unless otherwise specified, all references to the case are from this citation.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Krystle Fleming.

About the Author

Shawn McBride — R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride or call 407-517-0064.

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