A partner continuing after a dissolution was liable to account as a fiduciary to the outgoing partner in respect of his unauthorised use for his own benefit of the assets of the partnership. The quantum of the entitlement of the Outgoing Partner in respect of the profits made by the Continuing Partner must be determined by reference to what is right and equitable between the parties in all the circumstances and in particular the extent that the profits are attributable to use of the outgoing partner’s share of the partnership assets. It is notoriously difficult to attribute a proportion of the profits of a continuing partnership to the use of the outgoing partner’s share of the partnership assets.
Judges:
Wigram VC
Citations:
(1842) 1 Hare 253, 66 ER 1027
Jurisdiction:
England and Wales
Cited by:
Cited – Hardip Singh Gill v Kulbir Singh Sandhu ChD 26-Jan-2005
The partnership had been dissolved. It had involved conversion of a property to be run as a nursing home. The claimant was to manage the home, and the profits would be used first to pay him a salary, and then to be divided equally. When wound up . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 23 November 2022; Ref: scu.222919