Ward v Newalls Insulation Company Ltd & Anor [1998] EWCA Civ 287 (19 February 1998)

Ward v Newalls Insulation Company Ltd & Anor [1998] EWCA Civ 287 (19 February 1998)

The measure of Mr Ward's loss of earnings or earning capacity is to be based on his actual contribution to the partnership's profits (50%), not the 25% share allocated for tax purposes to his wife as a sleeping partner. The internal profit-sharing arrangement, being terminable at will and not reflecting actual...

Source-derived case information.

Citation
[1998] EWCA Civ 287
Parties
Plaintiff/appellant: Bryan Ward; First Defendant/respondent: Newalls Insulation Company Limited; Second Defendant/respondent: Cape Contracts Limited
Jurisdiction
England and Wales
Judgment Date
19 February 1998
Procedural Posture
Personal Injury Appeal / Appeal From High Court (queen's Bench Division, Sheffield District Registry) to Court of Appeal (civil Division)
Outcome
Appeal allowed
Legal Topics
Personal Injury Damages, Loss of Earnings, Partnership Profit Apportionment, Tax Arrangements and Legal Effect, Sleeping Partners
Tort Law Partnership Law Personal Injury Damages Loss of Earnings Partnership Profit Apportionment Tax Arrangements and Legal Effect Sleeping Partners

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 12 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Bryan Ward

Plaintiff/appellant

Newalls Insulation Company Limited

First Defendant/respondent

Cape Contracts Limited

Second Defendant/respondent

Procedural Posture

Personal Injury Appeal / Appeal From High Court (queen's Bench Division, Sheffield District Registry) to Court of Appeal (civil Division)

Legal Issues

  1. 1 Whether the plaintiff's loss of earnings should be calculated based on his actual contribution to partnership profits or limited to his formal share as declared for tax purposes
  2. 2 Whether the inclusion of non-working spouses as partners for tax purposes affects the calculation of damages for loss of earnings in personal injury claims

Ratio Decidendi

The measure of Mr Ward's loss of earnings or earning capacity is to be based on his actual contribution to the partnership's profits (50%), not the 25% share allocated for tax purposes to his wife as a sleeping partner. The internal profit-sharing arrangement, being terminable at will and not reflecting actual contributions, does not limit the damages recoverable in tort.

Court Disposition

Appeal allowed

Orders

  • Application for leave to amend granted
  • Appeal allowed on the partnership issue