Liability for improper distributions by limited liability partnership
Wis. Stat. § 178.0407
in effect(1) Except as otherwise provided in sub. (2), if a partner of a limited liability partnership consents to a distribution made in violation of s. 178.0406 and in consenting to the distribution fails to comply with s. 178.0409, the partner is personally liable to the partnership for the amount of the distribution which exceeds the amount that could have been distributed without the violation of s. 178.0406.
(2) To the extent the partnership agreement of a limited liability partnership expressly relieves a partner of the authority and responsibility to consent to distributions and imposes that authority and responsibility on one or more other partners, the liability stated in sub. (1) applies to the other partners and not to the partner that the partnership agreement relieves of the authority and responsibility.
(3) A person that receives a distribution knowing that the distribution violated s. 178.0406 is personally liable to the limited liability partnership but only to the extent that the distribution received by the person exceeded the amount that could have been properly paid under s. 178.0406.
(4) A person against which an action is commenced because the person is liable under sub. (1) may do any of the following:
(a) Implead any other person that is liable under sub. (1) and seek to enforce a right of contribution from the person.
(b) Implead any person that received a distribution in violation of sub. (3) and seek to enforce a right of contribution from the person in the amount the person received in violation of sub. (3).
(5) An action under this section is barred unless commenced not later than 2 years after the distribution.
Source: WI Statutes (Official Site)URL: https://docs.legis.wisconsin.gov/document/statutes/178.0407Fetched: 10/7/2026