What Illinois Laws Prevent a Partner from Cheating Another Partner?

Under the Illinois Uniform Partnership Act (IUPA), all partners are liable for any wrongful act or omission by any partner (In re Keck, Mahin & Cate, 274 B.R. 740 (2002))(Bane v. Ferguson, 707 F.Supp. 988 (1989)). This includes acts that occur in the ordinary course of the partnership’s business or are authorized by the partners (Bane v. Ferguson, 707 F.Supp. 988 (1989))(In re Ascher, 141 B.R. 652 (1992))[3]. The liability is not limited even for “innocent” partners.

As for the protection against cheating, partners are fiduciaries for one another under Illinois law (Bane v. Ferguson, 707 F.Supp. 988 (1989)). This means they have a duty to exercise the utmost good faith and honesty in all partnership dealings (Johnson v. Woldman, 158 B.R. 992 (1993)). Particularly, the Uniform Partnership Act in Illinois imposes a trust duty (Johnson v. Woldman, 158 B.R. 992 (1993)), (Federal Deposit Ins. Corp. v. Braemoor Associates, 686 F.2d 550 (1982)). It mandates that every partner must account to the partnership for any benefit and hold as a trustee for it any profits derived by him/her without the consent of the other partners from any transaction connected with the formation, conduct, or liquidation of the partnership, or from any use by him/her of its property.

However, this fiduciary duty is only recognized when a partner derives profits without the consent of the other partners (Johnson v. Woldman, 158 B.R. 992 (1993)). Also, the liability of any partner does not extend to former partners. Additionally, partners cannot sue their fellow partners for acts that occur in the ordinary course of business or are authorized by the co-partners until there has been a final settlement of partnership accounts (In re Ascher, 141 B.R. 652 (1992)).

If a partner believes that he/she has been cheated, the appropriate remedy to seek under the Illinois Partnership Act could be an accounting, especially if the issue between partners requires an accounting.

In federal cases, the principle is generally the same. For instance, in the case of In re Keck, Mahin & Cate, it was established that under Illinois law and the Agreement, partners are liable for claims arising before or during the time they were partners (In re Keck, Mahin & Cate, 274 B.R. 740 (2002)).

Why Hire Lubin Austermuehle for Corporate Oppression or Partnership Disputes?

When internal conflicts arise in a business, whether it’s corporate oppression or a partnership dispute, the repercussions can be significant. These disputes require a law firm with a deep understanding of business law and a proven ability to handle complex, high-stakes cases. Lubin Austermuehle is the premier choice for resolving these disputes, and here’s why:

Expertise in Business Litigation

Lubin Austermuehle’s legal team concentrates in business litigation, with extensive experience in handling corporate oppression and partnership disputes. Our attorneys understand the intricacies of business law and are skilled at navigating the legal challenges that arise in these types of cases.

Proven Track Record of Success

Our firm has successfully represented numerous clients in corporate oppression and partnership disputes. We have a history of achieving favorable outcomes, whether through negotiation, mediation, or litigation. Our results speak for themselves, demonstrating our ability to protect our clients’ interests effectively.

Strategic and Comprehensive Approach

We take a strategic and comprehensive approach to every case. Our team conducts a thorough analysis of the facts and legal issues, developing tailored strategies to address each client’s unique situation. We explore all possible avenues for resolution, including litigation, negotiation, and alternative dispute resolution methods.

Client-Centered Service

At Lubin Austermuehle, we prioritize our clients’ needs and concerns. We maintain open and transparent communication throughout the legal process, ensuring that our clients are informed and involved every step of the way. Our client-centered approach ensures that we understand and work towards our clients’ specific goals.

Skilled Negotiators and Litigators

Our attorneys are not only skilled negotiators but also formidable litigators. Whether your case requires a negotiated settlement or a courtroom battle, Lubin Austermuehle has the expertise and tenacity to achieve the best possible outcome. We are adept at handling the complexities of both negotiation and litigation.

Extensive Resources

Lubin Austermuehle has the resources necessary to handle complex business disputes. Our firm collaborates with top experts in various fields to strengthen our cases. We utilize advanced technology and research tools to build compelling arguments and present robust evidence.

Commitment to Cost-Effective Solutions

We understand that legal disputes can be costly. Lubin Austermuehle is committed to providing cost-effective legal solutions without compromising on quality. We offer flexible fee structures and work diligently to manage litigation costs, ensuring our clients receive excellent value for their investment.

Focus on Business Continuity

In corporate oppression and partnership disputes, it is crucial to consider the impact on business operations. Lubin Austermuehle focuses on achieving resolutions that support business continuity and long-term success. We strive to minimize disruption and help our clients navigate their disputes while maintaining their business objectives.


Choosing Lubin Austermuehle for your corporate oppression or partnership dispute means selecting a law firm with unparalleled expertise, a proven track record, and a client-focused approach. Our strategic, comprehensive, and cost-effective solutions are designed to achieve the best possible outcomes for our clients. Trust us to be your dedicated legal partner in resolving business disputes efficiently and effectively. Contact us online or at 630-333-0333 for a free consultation.

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