Opinion 20-187

January 20, 2021

Dear :

         This responds to your inquiry (20-187) asking whether you may be a limited liability partner in a limited liability partnership which will apply to be a franchisee of a for-profit business. You indicate that you would only be a “passive investor” and “would not be involved in day-to-day operations or management of personnel” if the application is successful.

The Rules Governing Judicial Conduct prohibit a full-time judge from being a “general partner…or other active participant of any business entity” (22 NYCRR 100.4[D][3]). However, the Rules do not prohibit a full-time judge from being a purely passive investor in a business entity. Therefore, provided you do not assume any active role, title, or function in the management or control of the business, you may be a limited liability partner.

Enclosed, for your convenience, are Opinions 18-169; 17-52; and 99-73 which address this issue.

                                                 Very truly yours,

                                                 Margaret T. Walsh

                                                 Supreme Court Justice

                                                 Committee Co-Chair

                                                 Lillian Wan

                                                 Acting Supreme Court Justice

                                                 Committee Co-Chair

Encls.