Milevski v Paltos [2022] NSWSC 261

Supreme Court New South Wales

Medium Neutral Citation: Milevski v Paltos [2022] NSWSC 261 Hearing dates: 1, 2, 3, 4, 10 February 2022 Date of orders: 14 March 2022 Decision date: 14 March 2022 Jurisdiction: Equity Before: Parker J Decision: See [221]-[228] Catchwords: PARTNERSHIP – partnership accounts – value of partnership assets – goodwill – family law practice – assets taken over by one former partner – files with future fee-earning potential – "established workforce" – practice manual with precedents – whether amounting to transfer of goodwill of partnership practice – basis and method of valuation – "fair value" – partners' obligations on dissolution – Partnership Act 1892, ss 38 and 39 EQUITY – accounts and receivers – dissolution of partnership – unpaid liabilities exceed realised assets – form of account – application to have former partners pay monies to put receivers in funds to discharge partnership liabilities – former partners' responsibility for receivers' fees Legislation Cited: Legal Profession Uniform Law (NSW), Part 6.4 Partnership Act 1892 (NSW), ss 6, 38, 39 Cases Cited: Alcock v Robb (1978) 2 BPR 9625 Bartier Perry Pty Ltd v Paltos [2021] NSWCA 158 Boghani v Nathoo [2011] 2 All ER (Comm) 743 Chan v Zachariah (1984) 154 CLR 178 Chia v Ireland [2000] SASC 047 Colin D Young Pty Ltd v Commercial and General Acceptance Ltd (Supreme Court of New South Wales – Court of Appeal, Hope JA, Hutley JA and Glass JA, 24 September 1982) Commissioner of Taxation (Cth) v Murry (1998) 193 CLR 605 Eastlake v Eastlake [2015] NSWSC 1772 Friend v Brooker (2009) 239 CLR 129 Geraghty v Minter (1979) 142 CLR 177 Old v Hodgkinson; Old v McInnes [2008] NSWSC 697 Old v McInnes and Hodgkinson [2011] NSWCA 410 Page v McKensey (Supreme Court of New South Wales, Windeyer J, 17 December 1993) Page v McKensey [1995] NSWCA 351 Syers v Syers (1876) 1 App Cas 174 Trego v Hunt [1896] AC 7 Walker v Martin (Supreme Court of South Australia – Full Court, King CJ, Millhouse J and Olsson J, 23 December 1993) Texts Cited: Banks, R I, Lindley & Banks on Partnership (12th ed, 2017, Thomson Reuters) Heydon, J D, M J Leeming and P G Turner, Meagher, Gummow & Lehane's Equity: Doctrines & Remedies (5th ed, LexisNexis Butterworths, 2014) Category: Principal judgment Parties: Main proceedings Peter Milevski (Plaintiff) Dennis Paltos (Defendant)