Haylett v Cayton & Anor [2015] EWHC 1951 (Comm) (08 July 2015)

Haylett v Cayton & Anor [2015] EWHC 1951 (Comm) (08 July 2015)

The claimant's 50% interest in the profits of Cayton & Co as at 28 February 2011 should be valued at £200,000, based on a maintainable earnings approach using a weighted average of recent years' fees, appropriate cost deductions, a multiplier of 3.5, and deduction for net debt. No deduction is to be made for...

Source-derived case information.

Citation
[2015] EWHC 1951 (Comm)
Parties
Claimant: Gary Haylett; First Defendant: John Cayton; Second Defendant: Caytons Law (formerly Cayton & Co)
Jurisdiction
England and Wales
Judgment Date
08 July 2015
Procedural Posture
Commercial Dispute / Quantum/valuation Following Liability Judgment
Outcome
Claimant awarded £200,000 for his 50% interest in the profits of Cayton & Co as at 28 February 2011, less a deduction of £4,345 for a VAT credit note; no deduction for computer equipment.
Legal Topics
Valuation of Partnership/joint Venture Interests, Fee Sharing Agreements, Implied Terms, Goodwill Valuation, Profit Share Calculation
Commercial Law Partnership Law Professional Services Valuation of Partnership/joint Venture Interests Fee Sharing Agreements Implied Terms Goodwill Valuation Profit Share Calculation

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Parties

Gary Haylett

Claimant

John Cayton

First Defendant

Caytons Law (formerly Cayton & Co)

Second Defendant

Procedural Posture

Commercial Dispute / Quantum/valuation Following Liability Judgment

Legal Issues

  1. 1 How to value the claimant's 50% interest in the profits of Cayton & Co as at 28 February 2011
  2. 2 Whether deductions should be made from the claimant's profit share for computer equipment and VAT credit notes

Ratio Decidendi

The claimant's 50% interest in the profits of Cayton & Co as at 28 February 2011 should be valued at £200,000, based on a maintainable earnings approach using a weighted average of recent years' fees, appropriate cost deductions, a multiplier of 3.5, and deduction for net debt. No deduction is to be made for computer equipment, but a deduction of £4,345 is to be made for a VAT credit note relating to PAYE/NI accrual for Mrs Haylett.

Court Disposition

Claimant awarded £200,000 for his 50% interest in the profits of Cayton & Co as at 28 February 2011, less a deduction of £4,345 for a VAT credit note; no deduction for computer equipment.

Orders

  • Defendants to pay claimant £200,000 for his 50% interest in Cayton & Co profits as at 28 February 2011.
  • Deduct £4,345 from the amount due to claimant for VAT credit note relating to PAYE/NI accrual for Mrs Haylett.