§ 8594. Expenses.
(a) General rule.--Except as otherwise prescribed by general rule, if a derivative action under this subchapter is successful, in whole or in part, or if anything is received by the plaintiff as a result of a judgment, compromise or settlement of an action or claim, the court may award the plaintiff reasonable expenses, including reasonable attorney fees, and shall direct him to remit to the limited partnership the remainder of those proceeds received by him. If the proceeds received by the plaintiff are insufficient to reimburse the reasonable expenses awarded to the plaintiff, the court may direct that the award of expenses or a portion thereof be paid by the limited partnership.
(b) Security for costs.--In any action instituted or maintained by holders or owners of less than 5% of the outstanding ownership interests in the limited partnership, unless those interests have an aggregate fair market value in excess of $200,000, the limited partnership in whose right the action is brought shall be entitled at any stage of the proceedings to require the plaintiffs to give security for the reasonable expenses, including attorney fees, that may be incurred by it in connection therewith, to which security the limited partnership shall have recourse in such amount as the court having jurisdiction determines upon the termination of the action. The amount of security may, from time to time, be increased or decreased in the discretion of the court having jurisdiction of the action upon showing that the security provided has or may become inadequate or excessive. The security may be denied or limited in the discretion of the court upon preliminary showing to the court, by application and upon such verified statements and depositions as may be required by the court, establishing prima facie that the requirement of full or partial security would impose undue hardship on plaintiffs and serious injustice would result.
Section: Previous 8563 8564 8565 8571 8572 8573 8574 8575 8576-167-8580 8581-167-8590 8591 8592 8593 8594Last modified: October 8, 2016