One partner in a firm of solicitors committed a fraud on a client by using deeds held on behalf of the client as security for a loan for his own benefit, the funds, so far as appeared, not passing through the firm’s accounts. The fraudulent partner eventually absconded and the client sued the remaining partners.
Held: They were not liable. The transaction was not within the ordinary course of the business of the partnership and was ‘not imputable to the partnership’.
(1886) 55 LJ Ch 481
England and Wales
Cited – Dixon Coles and Gill (A Former Firm) v Baines, Bishop of Leeds and Another CA 20-Jul-2021
Innocent co-trustee not liable for Default
Proceedings were brought by former clients against their former solicitors. One of the partners stole money held in the firm’s client account on behalf of the claimants. The other two partners were entirely innocent of, and in no way implicated in, . .
Lists of cited by and citing cases may be incomplete.
Updated: 22 July 2021; Ref: scu.666145