Laidlaw v Hillier Hewitt Elsley Pty Ltd [2007] NSWSC 808

Laidlaw v Hillier Hewitt Elsley Pty Ltd [2007] NSWSC 808

Although s 42 of the Partnership Act 1892 was not strictly applicable because the present case was not one involving an outgoing partner and surviving or continuing partners, the 6 per cent rate specified in s 42 was the appropriate rate because the situation was closely analogous, authority supported a restricted approach to interest between partners until accounts had been taken, s 100 of the Civil Procedure Act 2005 was of doubtful application, and the Partnership Act provision was closely linked to the subject matter of the dispute.

Jurisdiction
Australia
Judgment Date
24 July 2007
Procedural Posture
Dissolution of Partnership / Argument on Form of Orders Concerning Costs and Interest After Judgment
Outcome
Interest at 6 per cent on $38,000 was to be paid by the first defendant, and the plaintiff was to pay the costs of the proceedings including the costs of the interest argument.
Legal Topics
['dissolution of Partnership' 'interest on Partnership Assets After Dissolution' 'taking of Accounts' 'costs']
['partnership Law' 'civil Procedure' 'equity'] ['dissolution of Partnership' 'interest on Partnership Assets After Dissolution' 'taking of Accounts' 'costs']

Case Brief

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Procedural Posture

Dissolution of Partnership / Argument on Form of Orders Concerning Costs and Interest After Judgment

Legal Issues

  1. 1 ['What rate of interest should be applied to money held by one partner after dissolution and before accounts were taken.' 'Whether interest should be determined by s 42 of the Partnership Act 1892 or s 100 of the Civil Procedure Act 2005.' 'Whether clause 21 of the Partnership Deed was relevant to the interest rate.']

Ratio Decidendi

Although s 42 of the Partnership Act 1892 was not strictly applicable because the present case was not one involving an outgoing partner and surviving or continuing partners, the 6 per cent rate specified in s 42 was the appropriate rate because the situation was closely analogous, authority supported a restricted approach to interest between partners until accounts had been taken, s 100 of the Civil Procedure Act 2005 was of doubtful application, and the Partnership Act provision was closely linked to the subject matter of the dispute.

Court Disposition

Interest at 6 per cent on $38,000 was to be paid by the first defendant, and the plaintiff was to pay the costs of the proceedings including the costs of the interest argument.

Orders

  • ['Interest at 6 per cent on the $38,000 should be paid by the first defendant.' 'The cost of proceedings to be paid by the plaintiff should include the costs of this argument.' 'Orders to be made in accordance with the short minutes of order prepared on behalf of the first defendant.']