McCoy and Gugelman borrowed money from State Security Bank for their partnership, Antiques, Etc. When McCoy and Gugelman failed to pay back the debt, the bank sued them as individuals.
At trial, McCoy and Gugelman argued that their partnership, Antiques, Etc., was an entity, not an aggregate, of the partners.
Therefore, they concluded, the bank would have to show that the partnership funds were insufficient to answer the judgment before it could proceed against them individually. Are they correct? Why or why not?
Security State Bank v. McCoy, 361 N.W.2d 514 (NE).