Beaver v Cohen & Ors

Beaver v Cohen & Ors

Goodwill should be valued for clients who incur liability to pay fees to respondents after 29 August 1997, with a cut-off date for late transfers; work in progress should be valued at cost, deducting claimant’s time and profit element, but not respondents’ time, and only for clients for whom respondents completed work to invoice stage.

Parties
Claimant/appellant: Michael John Beaver; Defendant/respondent: Harry Cohen; Defendant/respondent: Alan Cooper; Defendant/respondent: Davis Bonley (a firm)
Jurisdiction
England and Wales
Judgment Date
10 February 2006
Procedural Posture
Civil Appeal / Judgment on Appeal From Deputy Master’s Order
Outcome
Appeal allowed in part
Legal Topics
Valuation of Goodwill, Valuation of Work in Progress, Dissolution of Business Association, Compensation for Transferred Clients
Commercial Law Partnership Law Valuation of Goodwill Valuation of Work in Progress Dissolution of Business Association Compensation for Transferred Clients

Case Brief

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Parties

Michael John Beaver

Claimant/appellant

Harry Cohen

Defendant/respondent

Alan Cooper

Defendant/respondent

Davis Bonley (a firm)

Defendant/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal From Deputy Master’s Order

Legal Issues

  1. 1 Basis for valuing goodwill when clients transfer after dissolution
  2. 2 Basis for valuing work in progress when clients transfer after dissolution
  3. 3 Whether deductions for time and profit should be made in work in progress valuation

Ratio Decidendi

Goodwill should be valued for clients who incur liability to pay fees to respondents after 29 August 1997, with a cut-off date for late transfers; work in progress should be valued at cost, deducting claimant’s time and profit element, but not respondents’ time, and only for clients for whom respondents completed work to invoice stage.

Court Disposition

Appeal allowed in part

Orders

  • Deputy Master’s order amended: goodwill to be valued for clients incurring fee liability to respondents after 29 August 1997, with cut-off date of 29 August 1998.
  • Work in progress to be valued at cost, deducting only claimant’s time and profit element, not respondents’ time.