Hocking v Western Australian Bank [1909] HCA 68

Hocking v Western Australian Bank [1909] HCA 68

Assignees of sub-shares from members of a mining partnership do not become partners—nor liable for partnership debts—under the Mining Act 1904 (W.A.) or by common law. Sec. 281(5) of the Act applies only to assignment of the whole interest, not fractions thereof. Mere attendance at a company formation meeting does not create estoppel against denying partnership liability. The appeal must be allowed and judgment entered for the defendants.

Parties
Appellants / Defendants: Hocking and Others; Respondent / Plaintiff: The Western Australian Bank
Jurisdiction
Australia
Judgment Date
03 November 1909
Procedural Posture
Appeal / On Appeal From the Supreme Court of Western Australia
Outcome
Appeal allowed
Legal Topics
Mining Partnerships, Assignment of Partnership Interests, Guarantee Liability, Estoppel
Partnership Law Mining Law Contract Law Mining Partnerships Assignment of Partnership Interests Guarantee Liability Estoppel

Case Brief

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Parties

Hocking and Others

Appellants / Defendants

The Western Australian Bank

Respondent / Plaintiff

Procedural Posture

Appeal / On Appeal From the Supreme Court of Western Australia

Legal Issues

  1. 1 Whether assignees of sub-shares in a mining partnership become partners and are liable for partnership debts under the Mining Act 1904 (W.A.)
  2. 2 Whether attendance at a company formation meeting estops the assignees from denying liability as partners
  3. 3 Whether sec. 281(5) of the Mining Act 1904 applies to assignment of a portion of a partnership interest

Ratio Decidendi

Assignees of sub-shares from members of a mining partnership do not become partners—nor liable for partnership debts—under the Mining Act 1904 (W.A.) or by common law. Sec. 281(5) of the Act applies only to assignment of the whole interest, not fractions thereof. Mere attendance at a company formation meeting does not create estoppel against denying partnership liability. The appeal must be allowed and judgment entered for the defendants.

Court Disposition

Appeal allowed

Orders

  • Judgment entered for the appellant defendants.
  • Order appealed from discharged.