LAWTON V. PARKER 40/1930

Delvsed 3.10 1920

LAWTON ve. PARKER .

MR JUSTICE RICH JUDGMENT MR JUSTICE STARKR MR JUSTICE DIXON

JUDGMENT RICH J. —e STARKE J. DIXON J. This appeal relates primarily to the question whether goodwill should be taken into the capital account of the partnership and if so . ateelag at what amount. Upon the construction of the partnership apesunts we agree with the learned Judge in thinking that it does form part of the capital of the partnership. The case being a small one His Honour at the instance of parties in effect took the capital account himself. He fixed the value of the goodwill at £600 relying upon a valuation of the witness (Cochrane) called for the ffefence. In the first place

the evidence of this witness as recorded does not justify a valuation

of £600 for the whole business,but at most £500. In the next place

the value of the material assets must be deducted. We think His Honours valuation therefore cannot be supported. As,however, the learned Judge accepted the evidence of the witness Cochrane ,and as we were most anxiot

prolonging to avoid z x

these proceedings we have hazarded a computation of tk capital upon tha, witness's evidence and given the respondent an option of accepting that in lieu of going upon an inquiry. The learned Judge departed entirely from the ordinary order as to costs in partnership

flares v. Giles 14. 942. cases, Not only did he not make them payable out of the assets but threw them wholly on the defendant appellant in spite of the fact that the plaintiff respondent had failed on important issues. We can find

no ground justifying the learned Judge's order as to costs which therefo

carinot stand,

ORDER: - Appeal allowed with costs , appeal against counter claim dismissed, Order of Wasley J. set aside. Wo order as to costs of trial Appellant to pay to respondent the sum of £200 in respect of his interest in the capital of the partnership and the amount of £57.5.4 in respect of profits such amount having been pkawet paid into Count. The appellant's costs of this appeal to be set off against the amounts payable by him to the respondent under this