Florida Bar Examination

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Two friends co-found a tech startup in Florida. They agree orally to share profits and decision-making authority equally but do not sign a partnership agreement or file any documents with the state. One founder, while acting on behalf of the business, negligently causes a significant data breach, leading to a large judgment against the business. What is the most likely personal liability of the other, non-negligent founder for this judgment?

She is not personally liable because she was not the negligent actor. Her liability is limited to her capital contribution to the business. She is jointly and severally liable for the full amount of the judgment. She is only liable for 50% of the judgment, reflecting her share of the partnership.

Correct Answer:

She is jointly and severally liable for the full amount of the judgment.

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