Massachusetts General Laws
Mass. Gen. Laws ch. 108A, § 14 (2026)
Liability of partnership for partner's misapplication of money or property
✓ text as last checked Sept. 2026 (this copy records no edition or section history)
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Section 14. The partnership is bound to make good the loss:
(a) Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and
(b) Where the partnership in the course of its business receives money or property of a third person and the money or property so received is misapplied by any partner while it is in the custody of the partnership.
Notes of Decisions
Cited in 2
cases, 1994–1995 · leading case: Starr v. Fordham, 648 N.E.2d 1261 (Mass. 1995).
Starr v. Fordham, 648 N.E.2d 1261 (Mass. 1995). “A partner is also jointly and severally liable for another partner’s misapplication of money or property. G. L. c. 108A, §§ 14 & 15 (a) (1992 ed.”
East Cambridge Sav. Bank v. Wheeler, 2 Mass. L. Rptr. 19 (Mass. Super. Ct. 1994). “Since the funds obtained from the plaintiff by Wheeler were never in the custody of the partnership of Fredella and Wheeler, the provisions of G.L.c. 108A, §14 have no application in this case.”
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