Davies v Barnes Webster & Sons Ltd

Davies v Barnes Webster & Sons Ltd

Mr Davies, as an ex officio member of the management committee, is personally liable for the contract entered into by Mr Smith (the treasurer) on behalf of the club, as the committee was entrusted with management and authorised the contract. The statutory demand is therefore properly served on him and should not be set aside.

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

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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 is personally liable for the club's contractual debt as a member of the management committee
  2. 2 Whether the statutory demand should be set aside against Mr Davies

Ratio Decidendi

Mr Davies, as an ex officio member of the management committee, is personally liable for the contract entered into by Mr Smith (the treasurer) on behalf of the club, as the committee was entrusted with management and authorised the contract. The statutory demand is therefore properly served on him and should not be set aside.

Court Disposition

Appeal dismissed

Orders

  • Statutory demand not set aside; appeal dismissed.
  • Creditor may commence bankruptcy proceedings after three months from the date of judgment.