The dissolution of a family-owned limited partnership was remanded to a Lake County court Tuesday after the Indiana Court of Appeals ruled that the trial court erred in allowing some of the partners to pursue a derivative action.

In a 35-page unanimous opinion, Judge Patricia Riley ordered continuation of proceedings that began almost 18 years ago to dissolve Rueth Development Company. The court affirmed in part, reversed in part and remanded the Lake Superior Court’s grant of relief vacating the dismissal of dissolution proceedings involving partners in the land-development company.

“Because appellees’ claims do not satisfy the statutory requirements for a limited partnership derivative action and because the claims asserted by Harold (Rueth) in the amended application were brought in the context of winding up RDC’s affairs and his demand for an accounting, the trial court’s grant of relief is clearly erroneous,” Riley wrote.

The order also ruled that the trial court did not abuse its discretion by granting relief under Trial Rule 60(B) and that the court did not abuse its discretion by granting a preliminary injunction on capital distribution and payment of attorney fees.