MARK CHRISTOPHER SHEPHERD v. RAYMOND GEORGE MALLON [2014] ScotSC 60 (05 March 2014)

MARK CHRISTOPHER SHEPHERD v. RAYMOND GEORGE MALLON [2014] ScotSC 60 (05 March 2014)

The pursuer misrepresented a material matter (the extent of his live caseload) and failed to correct the defender's misunderstanding, thereby inducing the defender to agree to pay £20,000 in breach of the pursuer's duty of good faith in partnership matters. The court refuses to enforce payment of the £20,000 sum but does not set aside the entire contract, as the misrepresentation only vitiates that part. The pursuer remains entitled to accounting and payment for work done and outstanding fees as per the unchallenged parts of the contract.

Citation
[2014] ScotSC 60
Parties
Pursuer: Mark Christopher Shepherd; Defender: Raymond George Mallon
Jurisdiction
Scotland
Judgment Date
05 March 2014
Procedural Posture
Civil Partnership Dispute / Interlocutory Judgment; Procedural Hearing Appointed to Resolve Outstanding Issues
Outcome
Procedural hearing appointed; enforcement of £20,000 payment refused due to misrepresentation; accounting and payment for work done and outstanding fees to proceed.
Legal Topics
Misrepresentation, Good Faith in Partnership, Contract Variation, Accounting Between Partners, Fiduciary Duties
Partnership Law Contract Law Civil Procedure Misrepresentation Good Faith in Partnership Contract Variation Accounting Between Partners Fiduciary Duties

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Parties

Mark Christopher Shepherd

Pursuer

Raymond George Mallon

Defender

Procedural Posture

Civil Partnership Dispute / Interlocutory Judgment; Procedural Hearing Appointed to Resolve Outstanding Issues

Legal Issues

  1. 1 Whether the pursuer misrepresented the extent of his caseload to the defender, inducing payment under a contract of variation of partnership
  2. 2 Whether the contract or part thereof should be set aside or not enforced due to misrepresentation
  3. 3 Whether the pursuer is entitled to accounting and payment under the contract for work done and outstanding fees

Ratio Decidendi

The pursuer misrepresented a material matter (the extent of his live caseload) and failed to correct the defender's misunderstanding, thereby inducing the defender to agree to pay £20,000 in breach of the pursuer's duty of good faith in partnership matters. The court refuses to enforce payment of the £20,000 sum but does not set aside the entire contract, as the misrepresentation only vitiates that part. The pursuer remains entitled to accounting and payment for work done and outstanding fees as per the unchallenged parts of the contract.

Court Disposition

Procedural hearing appointed; enforcement of £20,000 payment refused due to misrepresentation; accounting and payment for work done and outstanding fees to proceed.

Orders

  • Appoints parties to a procedural hearing to address outstanding issues on accounting and payment.
  • Refuses enforcement of the £20,000 payment under paragraph 2(e) of the contract of variation of partnership.