<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 48-7A-602 - Partner's power to dissociate; wrongful dissociation. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2069837Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069837SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069837CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2069837Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2069837DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069837DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2069837Normal-000002 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2069837Normal-000003 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2069837Normal-000004 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2069837000005 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2069837SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2069837SCL-000006 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2069837Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=48-7A-602"><span class="s2069837SENU">48-7A-602</span></a><span xml:space="preserve" class="s2069837SENU">. </span><span class="s2069837CL">Partner's power to dissociate; wrongful dissociation.</span></p><p dir="ltr" class="s2069837Normal-000000"><span class="s2069837DefaultParagraphFont">(a) A partner has the power to dissociate at any time, rightfully or wrongfully, by express will pursuant to subsection 48</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">7A</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">601(1).</span></p><p dir="ltr" class="s2069837Normal-000002"><span class="s2069837DefaultParagraphFont">(b) A partner's dissociation is wrongful only if:</span></p><p dir="ltr" class="s2069837Normal-000003"><span class="s2069837DefaultParagraphFont">(1)    It is in breach of an express provision of the partnership agreement; or</span></p><p dir="ltr" class="s2069837Normal-000003"><span class="s2069837DefaultParagraphFont">(2)    In the case of a partnership for a definite term or particular undertaking, before the expiration of the term or the completion of the undertaking:</span></p><p dir="ltr" class="s2069837Normal-000004"><span class="s2069837DefaultParagraphFont">(i)    The partner withdraws by express will, unless the withdrawal follows within ninety days after another partner's dissociation by death or otherwise under subsections 48</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">7A</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">601(6) to (10), inclusive, or wrongful dissociation under this subsection;</span></p><p dir="ltr" class="s2069837Normal-000004"><span class="s2069837DefaultParagraphFont">(ii)    The partner is expelled by judicial determination under subsection 48</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">7A</span><span class="s2069837DefaultParagraphFont-000001">-</span><span class="s2069837DefaultParagraphFont">601(5);</span></p><p dir="ltr" class="s2069837Normal-000004"><span class="s2069837DefaultParagraphFont">(iii)    The partner is dissociated by becoming a debtor in bankruptcy; or</span></p><p dir="ltr" class="s2069837Normal-000004"><span class="s2069837DefaultParagraphFont">(iv)    In the case of a partner who is not an individual, trust other than a business trust, or estate, the partner is expelled or otherwise dissociated because it willfully dissolved or terminated.</span></p><p dir="ltr" class="s2069837Normal-000002"><span class="s2069837DefaultParagraphFont">(c) A partner who wrongfully dissociates is liable to the partnership and to the other partners for damages caused by the dissociation. The liability is in addition to any other obligation of the partner to the partnership or to the other partners.</span></p><p dir="ltr" class="s2069837Normal"><span xml:space="preserve" class="s2069837000005"> </span></p><p dir="ltr" class="s2069837Normal"><span class="s2069837SCL">Source:</span><span xml:space="preserve" class="s2069837SCL-000006"> SL 2001, ch 249, § 602.</span></p></div></body></html>