M Young Legal Associates Ltd v Zahid (a firm) & Ors [2006] EWCA Civ 613 (16 May 2006)

M Young Legal Associates Ltd v Zahid (a firm) & Ors [2006] EWCA Civ 613 (16 May 2006)

A person can be a partner in a firm even if paid a fixed sum irrespective of profits and without entitlement to share in profits, provided the business is carried on in common with a view of profit and the parties intend to enter into a partnership; in this case, Mr Lees was a partner in Zahid (A Firm) for the relevant period.

Citation
[2006] EWCA Civ 613
Parties
Claimant/first Respondent: M. Young Legal Associates Ltd; First Defendant/second Respondent: Zahid (A Firm); Second Defendant/third Respondent: Sameera Sharif; Third Defendant/fourth Respondent: Jamail Akhtar Sharif; Fourth Defendant/fifth Respondent: Zahid Bashir; Fifth Defendant/appellant: Robert Heywood Ogden Lees
Jurisdiction
England and Wales
Judgment Date
16 May 2006
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) on Preliminary Issue
Outcome
appeal dismissed
Legal Topics
Definition of Partnership, Liability of Partners, Salaried Partner, Partnership Act 1890, Profit Sharing
Partnership Law Commercial Law Definition of Partnership Liability of Partners Salaried Partner Partnership Act 1890 Profit Sharing

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Parties

M. Young Legal Associates Ltd

Claimant/first Respondent

Zahid (A Firm)

First Defendant/second Respondent

Sameera Sharif

Second Defendant/third Respondent

Jamail Akhtar Sharif

Third Defendant/fourth Respondent

Zahid Bashir

Fourth Defendant/fifth Respondent

Robert Heywood Ogden Lees

Fifth Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) on Preliminary Issue

Legal Issues

  1. 1 Whether a person can be a partner in a firm without entitlement to share in profits, but instead paid a fixed sum irrespective of profits
  2. 2 Whether Mr Lees was a partner in Zahid (A Firm) for the relevant period and thus liable under the contract with the claimant

Ratio Decidendi

A person can be a partner in a firm even if paid a fixed sum irrespective of profits and without entitlement to share in profits, provided the business is carried on in common with a view of profit and the parties intend to enter into a partnership; in this case, Mr Lees was a partner in Zahid (A Firm) for the relevant period.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed.