Davies v Barnes Webster & Sons Ltd [2011] EWHC 2560 (Ch) (29 June 2011)

Davies v Barnes Webster & Sons Ltd [2011] EWHC 2560 (Ch) (29 June 2011)

The management committee, of which Mr Davies was an ex officio member, was entrusted with the management of the club and authorised the contract through its actions and acquiescence. Mr Smith, the treasurer, acted under the committee's delegated authority. Mr Davies, as a committee member, is personally liable for the debt under the contract. The statutory demand is therefore valid and should not be set aside.

Citation
[2011] EWHC 2560 (Ch)
Parties
Appellant: Davies; Respondent: Barnes Webster & Sons Ltd
Jurisdiction
England and Wales
Judgment Date
29 June 2011
Procedural Posture
Appeal / Judgment on Appeal From District Judge's Refusal to Set Aside Statutory Demand
Outcome
Appeal dismissed
Legal Topics
Statutory Demand, Personal Liability of Club Officers, Authority and Agency in Unincorporated Associations, Management Committee Liability
Insolvency Contract Law Club Law Statutory Demand Personal Liability of Club Officers Authority and Agency in Unincorporated Associations Management Committee Liability

Case Brief

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Parties

Davies

Appellant

Barnes Webster & Sons Ltd

Respondent

Procedural Posture

Appeal / Judgment on Appeal From District Judge's Refusal to Set Aside Statutory Demand

Legal Issues

  1. 1 Whether Mr Davies, as president and trustee of an unincorporated club, is personally liable for a debt under a building contract signed by the club's treasurer
  2. 2 Whether the statutory demand served on Mr Davies should be set aside

Ratio Decidendi

The management committee, of which Mr Davies was an ex officio member, was entrusted with the management of the club and authorised the contract through its actions and acquiescence. Mr Smith, the treasurer, acted under the committee's delegated authority. Mr Davies, as a committee member, is personally liable for the debt under the contract. The statutory demand is therefore valid and should not be set aside.

Court Disposition

Appeal dismissed

Orders

  • Statutory demand not set aside; remains valid against Mr Davies
  • Creditor may commence bankruptcy proceedings after three months from judgment date