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HRS §425E-1005

Who gets money from a partner's lawsuit

This section says that money won in a lawsuit brought on behalf of a limited partnership belongs to the partnership, not the person who filed the suit. If that person gets any money, they must give it to the partnership right away. A court can also order the partnership to pay the person's reasonable legal costs if the suit succeeds.

courts

The statute, as written — Proceeds and expenses

(a) Except as otherwise provided in subsection (b): (1) Any proceeds or other benefits of a derivative action, whether by judgment, compromise, or settlement, belong to the limited partnership and not to the derivative plaintiff; and (2) If the derivative plaintiff receives any proceeds, the derivative plaintiff shall immediately remit them to the limited partnership. (b) If a derivative action is successful in whole or in part, the court may award the derivative plaintiff reasonable expenses, including reasonable attorney's fees, from the recovery of the limited partnership.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.