A tenant for life of settled land set out on an elaborate fraud aiming for the capital. It required first a private Act of Parliament to enable the estate to be sold under the direction of the court and the proceeds paid into court and invested in other land; a fictitious sale of the tenant for life’s own lands to an associate of his; the application of the money in court in the purchase of the land from the associate at an excessive price; and the deliberate deception of the court to obtain an order under which part of the money in court was paid out to the tenant for life. He employed a firm of solicitors to act for him in obtaining the Act and the orders of the court and in every other proceeding under the Act. Brooks, the partner who acted in the transactions knew the circumstances of the transactions, but neither of his partners was aware that there was any fraud or irregularity in them.
Held: Though the partners were blameless, they were jointly and severally liable with Brooks to make good the loss to the trust estate. The court allowed a claim in Chancery for the vicarious liability of partners for his equitable wrongdoing.
Sir Lancelot Shadwell VC
(1842) 12 Sim 369
England and Wales
Cited – Dubai Aluminium Company Limited v Salaam and Others HL 5-Dec-2002
Partners Liable for Dishonest Act of Solicitor
A solicitor had been alleged to have acted dishonestly, having assisted in a fraudulent breach of trust by drafting certain documents. Contributions to the damages were sought from his partners.
Held: The acts complained of were so close to . .
These lists may be incomplete.
Updated: 20 May 2021; Ref: scu.193866