Prasad v Hanif [2021] EWHC 598 (Ch) (16 March 2021)

Prasad v Hanif [2021] EWHC 598 (Ch) (16 March 2021)

The defendant is liable to indemnify the partnership for employee claims due to breaches of duty and is debarred from contesting liability; the defendant has no legal or equitable interest in the practice property; partnership accounts should be adjusted only for receipts paid into the claimant’s account; no indemnity is owed by the claimant for alleged unauthorised expenses.

Citation
[2021] EWHC 598 (Ch)
Parties
Claimant: Dr Anant Prasad; Defendant: Dr Shaista Hanif
Jurisdiction
England and Wales
Judgment Date
16 March 2021
Procedural Posture
Partnership Dispute / Trial of Preliminary Issues
Outcome
Declaratory relief granted in favour of claimant; defendant ordered to indemnify partnership for employee claims; no equitable interest found for defendant in property; limited account adjustments ordered; no indemnity owed by claimant for alleged expenses.
Legal Topics
Partnership Dissolution, Indemnity for Employee Claims, Constructive Trusts, Partnership Property, Unfair Dismissal, Legal Expenses Insurance
Partnership Law Employment Law Equity Partnership Dissolution Indemnity for Employee Claims Constructive Trusts Partnership Property Unfair Dismissal +1 more

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Parties

Dr Anant Prasad

Claimant

Dr Shaista Hanif

Defendant

Procedural Posture

Partnership Dispute / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether the claimant is entitled to indemnity for employee claims
  2. 2 Whether partnership insurance should have covered employee claims
  3. 3 Whether the defendant has an equitable interest in partnership property

Ratio Decidendi

The defendant is liable to indemnify the partnership for employee claims due to breaches of duty and is debarred from contesting liability; the defendant has no legal or equitable interest in the practice property; partnership accounts should be adjusted only for receipts paid into the claimant’s account; no indemnity is owed by the claimant for alleged unauthorised expenses.

Court Disposition

Declaratory relief granted in favour of claimant; defendant ordered to indemnify partnership for employee claims; no equitable interest found for defendant in property; limited account adjustments ordered; no indemnity owed by claimant for alleged expenses.

Orders

  • Defendant to indemnify partnership against liability to three dismissed employees (£401,435)
  • Defendant to indemnify partnership against any additional liability to Dr Anupama Prasad and Dr Anicatt arising from defendant’s breaches