§ 25-316.Company, partnership, or unincorporated association; member's individual property; how subjected to satisfaction of judgment.
Article 3: Parties · Last amended 2006 · Last verified July 22, 2026
Full Text of § 25-316
Source
R.S.1867, Code § 27, p. 397; R.S.1913, § 7597; C.S.1922, § 8540; C.S.1929, § 20-316; R.S.1943, § 25-316; Laws 2006, LB 1115, § 12.
Plain-English Summary
A judgment against a company or partnership sued in its collective name, under Section 25-313, runs against the partnership as such. Section 25-316 addresses what happens when the partnership’s own property falls short of covering that judgment. If the plaintiff wants to reach the individual property of the people who make up the company or firm, the plaintiff may file a bill in equity against the several members, setting out the judgment already obtained and the insufficiency of the partnership property to satisfy it.
Once that equity action is filed, the plaintiff can obtain a decree for the debt and an award of execution against all or any of the individuals who appear to have been members of the company, association, or firm. This gives a judgment creditor a defined path to pursue individual members’ personal assets, rather than being left with an uncollectible judgment because the partnership itself lacks sufficient property.
Frequently Asked Questions
If I win a judgment against a partnership but it does not have enough property to pay, can I go after the individual partners?
Yes. Section 25-316 lets you file a bill in equity against the individual members, showing the judgment and the partnership property’s insufficiency, to reach their personal property.
Do I need a new lawsuit to reach the individual members’ property, or does the original judgment automatically apply to them?
You need to file a separate bill in equity against the individual members; the original judgment against the partnership does not by itself reach their personal assets.
What has to be shown in that equity action?
The judgment already rendered against the partnership and the insufficiency of the partnership’s property to satisfy it.
Can the plaintiff pursue all the members, or only some of them?
The plaintiff can obtain a decree and execution against all such persons or any of them who appear to have been members of the company, association, or firm.
Does this section apply to any judgment against a business, or only ones obtained under the partnership-name procedure?
It addresses judgments rendered against a company or partnership sued in that collective capacity, tying it to the same framework Section 25-313 establishes for suing unincorporated associations by their common name.