Retzke v. Larson

OPINION

GERBER, Judge.

Judgment creditor Frank J. Retzke appeals from an order dismissing his garnishment action against Ray P. Larson. The issue presented is whether a judgment creditor of a limited partnership can use a garnishment proceeding to prove and collect funds wrongfully distributed to a limited partner. We hold that Retzke is entitled to relief for reasons which follow.

FACTS

In 1978, Donald Howard and Ray Larson formed a limited partnership named Great Salt River Investment Properties (Great Salt River) with Howard being the general partner and Larson a limited partner. Great Salt…