Sim v. Howat & Anor 05 July 2011 [2011] ScotCS CSOH_115 (05 July 2011)

Sim v. Howat & Anor 05 July 2011 [2011] ScotCS CSOH_115 (05 July 2011)

The partnership of Pattison & Sim as constituted between 1 June 1999 and 31 May 2006 assumed responsibility for prior business debts, including the contingent liability to the SSSPF, as the business continued without interruption, assets and liabilities were not separately accounted, and no substantial value was given for the assets transferred.

Citation
[2011] ScotCS CSOH_115
Parties
Pursuer: William John Sim; Defender: David John Howat; Defender: Bridget Mary McLaren
Jurisdiction
Scotland
Judgment Date
05 July 2011
Procedural Posture
Commercial Action / Opinion Following Debate on Liability
Outcome
Case put out by order for further procedure; no final decree issued.
Legal Topics
Transfer of Partnership Liabilities, Retirement of Partner, Contingent Pension Fund Liability, Presumption of Liability Transfer
Partnership Law Commercial Law Transfer of Partnership Liabilities Retirement of Partner Contingent Pension Fund Liability Presumption of Liability Transfer

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Parties

William John Sim

Pursuer

David John Howat

Defender

Bridget Mary McLaren

Defender

Procedural Posture

Commercial Action / Opinion Following Debate on Liability

Legal Issues

  1. 1 Whether the new partnership assumed liability for prior business debts including contingent liability to the Scottish Solicitors' Staff Pension Fund (SSSPF)
  2. 2 Effect of capital contribution by incoming partner on liability transfer
  3. 3 Impact of partners' ignorance of contingent liability

Ratio Decidendi

The partnership of Pattison & Sim as constituted between 1 June 1999 and 31 May 2006 assumed responsibility for prior business debts, including the contingent liability to the SSSPF, as the business continued without interruption, assets and liabilities were not separately accounted, and no substantial value was given for the assets transferred.

Court Disposition

Case put out by order for further procedure; no final decree issued.

Orders

  • Case to be put out by order to determine further procedure.