Commercial Division Blog
Posted: November 29, 2017 / Categories Commercial, Injunctions Attachments and Other Preliminary Remedies
K-1s Not Dispositive Proof of Partnership Interests
On November 28, 2017, the First Department issued a decision in Rakosi v. Sidney Rubell Co., LLC, 2017 NY Slip Op. 08341, holding that K-1s were not dispositive proof of a partnership interest, explaining:
Defendants present the entities' K-1s as dispositive proof that Rubell family LLC-transferees of Rubell's interests are entity partners; however, such documents, standing alone, do not prove an express partnership exists. They may be relevant to the inquiry, but are not determinative.
(Internal citations omitted).
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