Legal Question in Business Law in California

Re: Partner's personal debt

The landlord can go after you if he gets a court judgment, because you are in a general partnership. Why in the world are you in a general partnership? I don't get why you think "the government" is involved in all of this, unless it is your landlord. I suppose the county marshal who would collect the court judgment on behalf of your partner's landlord is a government employee, or is there more to the story.

Re: Partner's personal debt

If the suit is against the partner for matters that have nothing to do with the partnership business, and outside the authority of that partner to bind the partnership, it would seem that neither the partnership nor the other partners is liable. See Corporations Code section 16305(a).

So, if the former landlord was leasing business space to the partnership, you could be liable. If the former landlord was only leasing your partner an apartment for his personal use, I see no way the partnership or other partner(s) are likely to be involved.

I don't understand your concern about "the government" going after you or the business. Ordinarily, private lawsuits (e.g., landlord-tenant disputes as your partner seems to be involved in) are resolved without the government intervening. In criminal matters, of course, the prosecution is brought in the name of the people, the state, the queen, etc., but in a civil matter the only government involvement is that the court system is provided for the litigants by the judicial branch of government, and the judge is a government employee. That's about like the government being involved when you drive to Las Vegas because the government builds and maintains the roads.

Re: Partner's personal debt

In general, a partner is unlimitedly liable for any conduct, liabilities or debts of his partner. There can be exceptions for things that are truly personal to the partner, but you will have to argue them in court every time he gets sued and they also name you. It is a very bad decision that should be changed immediately. Contact me if interested in doing it right.