A partner is not a co-owner of partnership property and has no interest in partnership property which can be transferred, either voluntarily or involuntarily.
History: Laws 1996, ch. 53, § 501.
ANNOTATIONSPartnership treated as separate entity. — The Uniform Partnership Act treats the partnership and its assets and liabilities as a separate entity, distinct from the assets and liabilities of its owners. This scheme is necessary to prevent disruption of, and facilitate credit for, the partnership business. It is equally necessary in the context of joint ventures. Agri-Tech Servs., Inc. v. Citizens Bank, 898 F.2d 1475 (10th Cir. 1990).
Property rights remain during termination. — The fact that a limited partnership had been dissolved and was in the process of being terminated did not ameliorate the requirements of former Section 54-1-25 NMSA 1978 relating to assignment of partnership property. Daniels Ins., Inc. v. Daon Corp., 1987-NMCA-110, 106 N.M. 328, 742 P.2d 540.
Assignment necessary for substitution of parties. — Under Rule 1-025C NMRA, as a matter of law, substitution of parties cannot be predicated upon the written assignment by one limited partner in the cause of action (the rights in the cause of action) owned by the partnership without joinder or consent of the remaining partner in the same partnership property, but an invalid or ineffective assignment may be validated by ratification. Daniels Ins., Inc. v. Daon Corp., 1987-NMCA-110, 106 N.M. 328, 742 P.2d 540.
Conversion of partnership property dismissed with prejudice. — When a partner sought possession of certain disputed property, purchased by the partnership, without the consent of his partners and for other than partnership purposes, his conversion claim against the seller, seeking individual damages, was properly dismissed with prejudice. Stephen v. Phillips, 1984-NMCA-098, 101 N.M. 790, 689 P.2d 939.
There is no ownership of individual interest in partnership property prior to dissolution. 1963 Op. Att'y Gen. No. 63-148.
No exemption for property tax. — Partnership property, not being either joint or community property, and not being individually owned, and no portion thereof being individually owned under this section, does not come with any exemption for property tax granted by statute or authorized by the constitution. 1963 Op. Att'y Gen. No. 63-148.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 6 Am. Jur. 2d Attachment and Garnishment § 187; 25 Am. Jur. 2d Dower and Curtesy § 14; 40 Am. Jur. 2d Homestead § 61; 59A Am. Jur. 2d Partnership § 329 et seq.
Right of individual partner to exemption in partnership property, 4 A.L.R. 300.
Right of partner to preference over creditors of copartner, 6 A.L.R. 160.
Community character of interest of a partner in partnership real property, 20 A.L.R. 374.
Partnership land as real or personal property for purposes of descent and distribution, 25 A.L.R. 389.
Validity and effect of chattel mortgage on partner's interest in firm, 54 A.L.R. 534.
Right of other partners or partnership creditors in respect of insurance on interest of one of the partners, 61 A.L.R. 1201.
Indebtedness to partnership as subject of attachment or garnishment by creditor of individual partner, 71 A.L.R. 7, 105 A.L.R. 326.
Relative rank of judgment, attachment or execution based on partnership liability and judgment, attachment or execution based on liability of individual partner, 75 A.L.R. 997.
Partition of partnership real property, 77 A.L.R. 300.
Power of surviving partner or member of joint adventure to grant or sell oil and gas lease for other mineral rights covering land belonging to partnership or joint adventure, 89 A.L.R. 588.
Death of one or two or more judgment creditors under a joint or partnership judgment as affecting judgment, 122 A.L.R. 752.
Waiver or estoppel predicated upon surviving partner's surrender of possession of partnership property to personal representative of deceased partner, 137 A.L.R. 1024.
Ex parte appointment of receiver for partnership, 169 A.L.R. 127.
Lessee interest of individual as becoming partnership asset of firm subsequently formed, 37 A.L.R.2d 1076.
Nonassignability of partner's right in specific partnership property, construction, application and effect of Uniform Partnership Act § 25 (2) (b) (54-1-1 NMSA 1978 et seq.) relating to, 39 A.L.R.2d 1365.
Real estate owned by partner before formation of partnership, when deemed to have become asset of firm, 45 A.L.R.2d 1009.
Partnership matters as affecting estate by entireties in personal property, 64 A.L.R.2d 8, 22 A.L.R.4th 459.
Relative rights of surviving partner and the estate of the deceased partner in proceeds of life insurance acquired pursuant to partnership agreement, 83 A.L.R.2d 1347.
68 C.J.S. Partnership §§ 85, 86.