Heather Capital Ltd v Levy and McRae & Ors [2015] ScotCS CSOH_115 (25 August 2015)

Heather Capital Ltd v Levy and McRae & Ors [2015] ScotCS CSOH_115 (25 August 2015)

The pursuer failed to aver facts showing that the three individuals (Gillies, Sleigh, Booth) either expressly or tacitly accepted liability for prior debts of the firm. The normal rule is that the pursuer must plead and prove such facts. The court therefore dismissed the case against these individuals and refused to allow amendment to add further individuals without proper averments.

Citation
[2015] ScotCS CSOH_115
Parties
Pursuer: Heather Capital Limited (in liquidation); Defenders: Levy & McRae and Others
Jurisdiction
Scotland
Judgment Date
25 August 2015
Procedural Posture
Civil / Interlocutory (plea in Law and Amendment Motions)
Outcome
Partial dismissal and refusal of amendment; further procedure ordered.
Legal Topics
Liability of New Partners, Fiduciary Duties, Dishonest Assistance, Pleading Requirements, Insurance Disclosure, Amendment of Pleadings
Partnership Law Professional Negligence Civil Procedure Liability of New Partners Fiduciary Duties Dishonest Assistance Pleading Requirements Insurance Disclosure +1 more

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Parties

Heather Capital Limited (in liquidation)

Pursuer

Levy & McRae and Others

Defenders

Procedural Posture

Civil / Interlocutory (plea in Law and Amendment Motions)

Legal Issues

  1. 1 Whether new partners in a firm are liable for acts or omissions prior to their admission
  2. 2 Whether the pursuer has pled sufficient facts to convene certain individuals as defenders
  3. 3 Whether the court should order disclosure of insurance details

Ratio Decidendi

The pursuer failed to aver facts showing that the three individuals (Gillies, Sleigh, Booth) either expressly or tacitly accepted liability for prior debts of the firm. The normal rule is that the pursuer must plead and prove such facts. The court therefore dismissed the case against these individuals and refused to allow amendment to add further individuals without proper averments.

Court Disposition

Partial dismissal and refusal of amendment; further procedure ordered.

Orders

  • Dismissal of case against third, sixth, and seventh defenders (Gillies, Sleigh, Booth)
  • Refusal to allow amendment to add five further individuals as defenders