J. J. Coughlan Ltd. v Ruparelia & Ors

The acts of Mr Ruparelia, including his statements and the Escrow Agreement, were not within the ordinary course of a solicitor’s business. The transaction was so abnormal and preposterous that it could not be considered part of the usual business of a solicitor. Therefore, the firm was not liable under sections 5 or 10 of the Partnership Act 1890.

Parties: Appellant: J. J. Coughlan Limited; Respondent: Ruparelia and Others
Jurisdiction: England and Wales
Judgment Date: 21 July 2003
Procedural Posture: Civil Appeal / Appeal From Queen’s Bench Division to Court of Appeal
Outcome: Appeal dismissed
Legal Topics: Vicarious Liability, Ostensible Authority, Fraud, Breach of Escrow Agreement

Partnership Law Tort Law Contract Law Vicarious Liability Ostensible Authority Fraud Breach of Escrow Agreement

Case Brief

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Parties

J. J. Coughlan Limited

Appellant

Ruparelia and Others

Respondent

Procedural Posture

Civil Appeal / Appeal From Queen’s Bench Division to Court of Appeal

Legal Issues

1 Whether the acts of Mr Ruparelia were in the ordinary course of the business of the firm under section 10 of the Partnership Act 1890
2 Whether the Escrow Agreement was binding on the firm under section 5 of the Partnership Act 1890
3 Whether the firm is vicariously liable for the fraudulent acts of a partner

Ratio Decidendi

Court Disposition

Appeal dismissed