Towboat Partners, Ltd. v. Donelan

OPINION

FAGG, Circuit Judge.

Donelan Phelps & Co. and Donelan’s two individual partners (Donelan) appeal from a judgment requiring them as general partners to indemnify the limited partners of Towboat Partners, Ltd. (Towboat) for losses incurred by the limited partners due to default on a partnership mortgage loan. We affirm.

The Towboat limited partnership agreement specifically requires the general partners to make sufficient cash contributions to fund fully the minimum cash flow requirements of the partnership. The agreement further provides when a default on the mortgage loan occurs due to…