Stroyan v. Milroy [1909] ScotLR 236 (23 December 1909)

A partner who pays a partnership debt evidenced by bills of exchange is not entitled to immediate relief from a co-partner; recourse depends on the state of the partnership account and must await partnership accounting upon dissolution.

Citation: [1909] ScotLR 236
Parties: Pursuer: John Stroyan; Defender: James Milroy
Jurisdiction: Scotland
Judgment Date: 23 December 1909
Procedural Posture: Civil / Reclaiming Note Against Interlocutor
Outcome: Action sisted to await partnership accounting; interlocutor of Lord Ordinary recalled; sixth plea-in-law for defender sustained.
Legal Topics: Contribution Between Partners, Indemnity for Partnership Debts, Bill of Exchange Liability, Accounting on Dissolution

Partnership Law Commercial Law Contribution Between Partners Indemnity for Partnership Debts Bill of Exchange Liability Accounting on Dissolution

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Parties

John Stroyan

Pursuer

James Milroy

Defender

Procedural Posture

Civil / Reclaiming Note Against Interlocutor

Legal Issues

1 Is a partner entitled to immediate relief from a co-partner for payment of partnership debts evidenced by bills of exchange, or must such relief await partnership accounting?
2 Does the right of contribution arise independently of partnership accounting when bills are paid by one partner?

Ratio Decidendi

Court Disposition

Action sisted to await partnership accounting; interlocutor of Lord Ordinary recalled; sixth plea-in-law for defender sustained.

Orders

Action sisted pending result of accounting in judicial factory.
Remitted to Lord Ordinary with instructions to sist the action.