THE COMMONWEALTH OF AUSTRALIA V. MILNE & ORS. 18/1921

THE COMMONWEALTH OF AUSTRALIA V. MILNE & ORS. 18/1921

William Milne was not merely agent for lodging claims but also for getting claims paid, and the fraudulent steps were taken for this purpose; therefore, the other partners are liable for the fraud as it occurred in the ordinary course of the partnership's business.

Parties
Plaintiff: Commonwealth of Australia; Defendant: William Milne; Defendant: Andrew Milne; Defendant: Martin Luther Milne; Defendant: Milne Bros.
Jurisdiction
Australia
Judgment Date
24 May 1921
Procedural Posture
Civil Action / Judgment After Trial
Outcome
judgment for plaintiff
Legal Topics
Liability of Partners, Fraudulent Misrepresentation, Money Had and Received
Partnership Law Contract Law Fraud Liability of Partners Fraudulent Misrepresentation Money Had and Received

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Parties

Commonwealth of Australia

Plaintiff

William Milne

Defendant

Andrew Milne

Defendant

Martin Luther Milne

Defendant

Milne Bros.

Defendant

Procedural Posture

Civil Action / Judgment After Trial

Legal Issues

  1. 1 Are innocent partners liable for fraudulent acts of a co-partner committed in the ordinary course of business?
  2. 2 Did William Milne act within the ordinary course of the firm's business when perpetrating the fraud?

Ratio Decidendi

William Milne was not merely agent for lodging claims but also for getting claims paid, and the fraudulent steps were taken for this purpose; therefore, the other partners are liable for the fraud as it occurred in the ordinary course of the partnership's business.

Court Disposition

judgment for plaintiff

Orders

  • Judgment for the amount claimed (£29,662:11:5) with costs against all defendants.