Walker v. Smith and Others [1906] ScotLR 43_454 (13 March 1906)

Walker v. Smith and Others [1906] ScotLR 43_454 (13 March 1906)

A partner in a firm of law-agents does not have implied authority to bind the firm by granting an obligation in the firm's name for a transaction known to be for his private purposes, especially where the other partners have not authorised or benefited from the transaction. The pursuer's agent was negligent in accepting the obligation without verifying authority, and this negligence bars recovery against the innocent partners.

Citation
[1906] ScotLR 43_454
Parties
Pursuer: Annabella Walker; Defender: William Kidd Smith; Defender: Robert Boyd; Defender: William Cunningham Wilson
Jurisdiction
Scotland
Judgment Date
13 March 1906
Procedural Posture
Civil Action for Payment of Debt and Damages / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division
Outcome
Action dismissed against Boyd and Wilson (assoilzied); decree granted against Smith by default.
Legal Topics
Implied Mandate of Partner, Scope of Authority of Law Agent, Liability of Partners for Acts of Co Partner, Fraud by Partner, Contributory Negligence, Delay in Enforcement (mora)
Partnership Law Agency Law Contract Law Implied Mandate of Partner Scope of Authority of Law Agent Liability of Partners for Acts of Co Partner Fraud by Partner Contributory Negligence +1 more

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Parties

Annabella Walker

Pursuer

William Kidd Smith

Defender

Robert Boyd

Defender

William Cunningham Wilson

Defender

Procedural Posture

Civil Action for Payment of Debt and Damages / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Whether a partner in a firm of law-agents has implied authority to bind the firm by granting an obligation in the firm's name for a transaction known to be for his private purposes.
  2. 2 Whether the other partners are liable on an obligation granted by one partner in the firm's name without their authority.
  3. 3 Whether the pursuer is barred from recovery due to contributory negligence or delay in enforcing the obligation.

Ratio Decidendi

A partner in a firm of law-agents does not have implied authority to bind the firm by granting an obligation in the firm's name for a transaction known to be for his private purposes, especially where the other partners have not authorised or benefited from the transaction. The pursuer's agent was negligent in accepting the obligation without verifying authority, and this negligence bars recovery against the innocent partners.

Court Disposition

Action dismissed against Boyd and Wilson (assoilzied); decree granted against Smith by default.

Orders

  • Boyd and Wilson assoilzied from conclusions of the summons; action dismissed as against them.
  • Decree against Smith for payment of £223, 16s. with interest on £200 at 5% due to failure to appear.