Roughead v. White [1912] ScotLR 234 (16 November 1912)

Roughead v. White [1912] ScotLR 234 (16 November 1912)

The pursuer, having signed the bonds as a principal debtor, remained liable for the obligations under those bonds after his withdrawal from the partnership. The bond of relief entitled him only to be relieved by the remaining partners if a demand was made by a creditor, not to immediate discharge or payment. The renewal and assignation of the bonds were within the normal business of the association and did not affect his liability. The pursuer was not a cautioner but a principal debtor, and his rights were regulated solely by the bond of relief.

Citation
[1912] ScotLR 234
Parties
Pursuer: William Roughead; Defenders: Alexander White and others
Jurisdiction
Scotland
Judgment Date
16 November 1912
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Dismissal
Outcome
action dismissed
Legal Topics
Withdrawal From Partnership, Liability Under Partnership Bonds, Bond of Relief, Principal Debtor Vs Cautioner, Assignment and Renewal of Security
Partnership Law Contract Law Withdrawal From Partnership Liability Under Partnership Bonds Bond of Relief Principal Debtor Vs Cautioner Assignment and Renewal of Security

Case Brief

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Parties

William Roughead

Pursuer

Alexander White and others

Defenders

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Dismissal

Legal Issues

  1. 1 Whether a withdrawing partner remains liable as principal debtor under partnership bonds after retirement and substitution of a new member.
  2. 2 Whether the bond of relief entitles the pursuer to immediate discharge or payment by the remaining partners.
  3. 3 Whether the pursuer's position is that of a cautioner with rights to equitable relief or that of a principal debtor.

Ratio Decidendi

The pursuer, having signed the bonds as a principal debtor, remained liable for the obligations under those bonds after his withdrawal from the partnership. The bond of relief entitled him only to be relieved by the remaining partners if a demand was made by a creditor, not to immediate discharge or payment. The renewal and assignation of the bonds were within the normal business of the association and did not affect his liability. The pursuer was not a cautioner but a principal debtor, and his rights were regulated solely by the bond of relief.

Court Disposition

action dismissed

Orders

  • The Court adhered to the Lord Ordinary's interlocutor and dismissed the action.