Gazzana v Santamaria (No 2) [2016] NSWSC 1555

Gazzana v Santamaria (No 2) [2016] NSWSC 1555

The defendants failed to prove any agreement, estoppel, or sufficient evidentiary basis for treating any proportion of the Kemps Creek property expenses as partnership expenses. No adjustment should be made for the SBC Holdings judgment because, although it had been held to be a partnership debt, it was a judgment against the second defendant, had not been paid by or claimed by the second defendant from the partnership, and the evidence did not establish its present status. The unpaid invoices should be ignored in finalising the partnership accounts because they were long overdue and there was no evidence that any party proposed to recover them.

Jurisdiction
Australia
Judgment Date
04 November 2016
Procedural Posture
Partnership Dissolution and Winding Up Proceedings / Determination on the Papers of Outstanding Accounting Issues Before Final Orders
Outcome
Outstanding accounting issues determined; final orders deferred pending further submissions from the parties.
Legal Topics
['dissolution of Partnership' 'winding Up of Partnership' 'partnership Accounts' 'partnership Expenses' 'indemnity for Partnership Debts' 'unpaid Invoices']
['partnership Law' 'civil Procedure'] ['dissolution of Partnership' 'winding Up of Partnership' 'partnership Accounts' 'partnership Expenses' 'indemnity for Partnership Debts' 'unpaid Invoices']

Case Brief

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Procedural Posture

Partnership Dissolution and Winding Up Proceedings / Determination on the Papers of Outstanding Accounting Issues Before Final Orders

Legal Issues

  1. 1 ['Whether mortgage payments made in respect of the Kemps Creek property during the subsistence of the partnership were an expense of the partnership.' 'Whether water rates paid in respect of the Kemps Creek property during the subsistence of the partnership were an expense of the partnership.' 'Whether amounts paid to Integral Energy in respect of the Kemps Creek property during the subsistence of the partnership were an expense of the partnership.' 'Whether council rates paid to Liverpool City Council in respect of the Kemps Creek property during the subsistence of the partnership were an expense of the partnership.' 'Whether any allowance should be made for a judgment debt obtained by SBC Holdings Pty Ltd on 31 July 2013 against the second defendant for $79,473.53 plus costs.' "Whether any allowance should be made for invoices issued by the partnership, or by the second defendant on the partnership's behalf, which had not been paid."]

Ratio Decidendi

The defendants failed to prove any agreement, estoppel, or sufficient evidentiary basis for treating any proportion of the Kemps Creek property expenses as partnership expenses. No adjustment should be made for the SBC Holdings judgment because, although it had been held to be a partnership debt, it was a judgment against the second defendant, had not been paid by or claimed by the second defendant from the partnership, and the evidence did not establish its present status. The unpaid invoices should be ignored in finalising the partnership accounts because they were long overdue and there was no evidence that any party proposed to recover them.

Court Disposition

Outstanding accounting issues determined; final orders deferred pending further submissions from the parties.

Orders

  • ['No adjustment should be made to the partnership accounts for the Kemps Creek property expenses.' 'No adjustment should be made to the partnership accounts to allow for the SBC Holdings judgment, without preventing the plaintiff or first defendant from claiming contribution in respect of any payment made in...