SACRAMENTO > SUNCREEK
APARTMENTS v. CAMBRIDGE > ADVANTAGED
PROPERTIES













Filed 7/30/10









CERTIFIED FOR PARTIAL PUBLICATION^*



IN THE COURT OF APPEAL
OF THE STATE OF CALIFORNIA

THIRD APPELLATE DISTRICT

(Sacramento)

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SACRAMENTO SUNCREEK APARTMENTS, LLC, et al., Plaintiffs and Appellants, v. CAMBRIDGE ADVANTAGED PROPERTIES II, L.P., et al., Defendants and Respondents.

C060886 (Super. Ct. No. 05AS02621)

STORY CONTINUE
FROM PART I….







In support of their argument, plaintiffs cite a number of
out-of-state cases where the courts permitted taxation of a nonresident limited
partner on income earned by the partnership in the forum state. (See, e.g., ADDIN BA xc <@cs> xl 62 s
XIPGHO000026 xhfl Rep xpl 1 l "Borden Chems. & Plastics, L.P. v.
Zehnder(2000)
726 N.E.2d 73" >Borden Chems. &
Plastics, L.P. v. Zehnder (2000) 726 N.E.2d 73;
ADDIN BA xc <@cs> xl 58 s
XIPGHO000027 xhfl Rep xpl 1 l "Department of Revenue v.
Sledge(2000)
528 S.E.2d 260, 262" >Department of Revenue v. Sledge (2000)
528 S.E.2d 260, 262.) However, in
none of these cases did the court go on to find a nonresident limited partner
was subject to personal jurisdiction in the forum state solely because he was
subject to taxation in that state.

We are not
surprised. Limited partnerships are
treated as associations of individuals for income tax purposes but as discrete
entities for other purposes. A limited
partnership â€