(a) A partnership is liable for loss or injury caused to a person, or for a penalty incurred, as a result of a wrongful act or omission, or other actionable conduct, of a partner acting in the ordinary course of business of the partnership or with authority of the partnership.

(b) If, in the course of the partnership's business or while acting with the authority of the partnership, a partner receives or causes the partnership to receive money or property of a person not a partner, and the money or property is misapplied by a partner, the partnership is liable for the loss.

History: Laws 1996, ch. 53, § 305.

Release of partnership destroys vicarious liability. — Since tort liability of partners is vicarious, that is, imputed from the partnership, when the partnership is released, the means by which liability is imputed to the partners is destroyed. Kinetics, Inc. v. El Paso Prods. Co., 1982-NMCA-160, 99 N.M. 22, 653 P.2d 522.

Liability of partner for punitive damages. — Absent a finding of ratification, authorization, or participation in the fraudulent conduct, punitive damages may not be recovered from partners for one partner's fraudulent conduct. Duncan v. Henington, 1992-NMSC-043, 114 N.M. 100, 835 P.2d 816.

Partners of partner found liable for fraud were liable to plaintiff jointly and severally for the award of compensatory damages, attorney fees, and costs; however, only partner committing fraudulent acts was liable to plaintiff for the award of punitive damages. Duncan v. Henington, 1992-NMSC-043, 114 N.M. 100, 835 P.2d 816.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 59A Am. Jur. 2d Partnership § 247 et seq.

Intoxicated partner, liability for negligence, 55 A.L.R. 1225.

Marital or parental relationship between plaintiff and member of partnership as affecting right to maintain action in tort against partnership, 101 A.L.R. 1231.

Personal services, liability of partner for failure to perform, 165 A.L.R. 981.

Tort: liability of partners in tort as joint and several, 175 A.L.R. 1310.

Liability of attorney for loss of client's money or personal property in his possession or entrusted to him, 26 A.L.R.2d 1340.

Assault by partner or joint adventurer, liability for, 30 A.L.R.2d 859.

Libel, liability of partners or partnership for, 88 A.L.R.2d 474.

Derivative liability of partner for punitive damages for wrongful act of copartner, 14 A.L.R.4th 1335.

68 C.J.S. Partnership §§ 168, 171.