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According to sources — including former partners who have spoken with insiders at Neal Gerber — partners are being asked to sign personal guarantees and pay the $9 million over a period of three to five years and amounts based on their stakes in the firm. The figure, which averages about $90,000 per partner, represents what won't be covered by insurance, these sources say.

http://www.chicagobusiness.com/article/ ... settlement

I'm in business associations right now and I can't figure out why the partners aren't protected by the LLP?

greenchair wrote:According to sources — including former partners who have spoken with insiders at Neal Gerber — partners are being asked to sign personal guarantees and pay the $9 million over a period of three to five years and amounts based on their stakes in the firm. The figure, which averages about $90,000 per partner, represents what won't be covered by insurance, these sources say.

http://www.chicagobusiness.com/article/ ... settlement

I'm in business associations right now and I can't figure out why the partners aren't protected by the LLP?

I have no clue what the deal is here, but often creditors demand personal guarantees from owners of entities with limited liabilities. They could worry Neal Gerber could go Dewey and not pay anything.

Well, for the partnership to keep on operating, they probably need to pay the $9 million fee. The article calculated that to $90,000 per partner. Otherwise, they could file bankruptcy and be personally protected...

They're liable because it's a malpractice claim and limited liability doesn't extend to malpractice. If a partner in an LLP commits malpractice, they, and any other partners that played a part, are individually liable (although the LLP as a whole is not).