Robert Mark Walker v Rodney Derane Melham [2007] NSWSC 264

New South Wales Supreme Court

CITATION : Robert Mark Walker v Rodney Derane Melham [2007] NSWSC 264

HEARING DATE(S) : 7 & 8 March 2007

JUDGMENT DATE : 9 March 2007

JURISDICTION : Equity Division

JUDGMENT OF : White J

EX TEMPORE JUDGMENT DATE : 9 March 2007

DECISION : See paragraphs 80-89 of judgment.

CATCHWORDS : PARTNERSHIP – Dissolution – Partnership for undefined term dissolvable by giving notice – Determination of when partnership dissolved – Abandonment of basis on which partnership conducted amounted to abandonment of partnership – Abandonment operates as notice of intention to dissolve partnership – Effect – Assets – Whether land an asset of the partnership – Land purchased from distributed partnership profits and not treated as partnership asset in accounts – Held that land not a partnership asset – Outgoing partner entitled to share of value of net partnership assets as at date of dissolution – Plaintiff's entitlement to interest on his share of value of net partnership assets – Profits – Profits earned by partnership business after dissolution – Whether outgoing partner abandoned entitlement to share of profits attributable to use of his share of partnership assets – Held that no such abandonment – Laches – Plaintiff's delay in commencing proceedings to seek account of post-dissolution profits would cause unfair prejudice to defendant – Held that plaintiff gave notice of dissolution of partnership by abandonment of partnership - plaintiff entitled to share of value of net partnership assets as at date of dissolution - plaintiff entitled to interest under s 42(1) of the Partnership Act 1892 - doctrine of laches precluded plaintiff from claiming account of profits arising from defendant's use of his share of partnership assets. - (NSW) Partnership Act 1892, ss 20, 21, 26(1), 32(c), 42