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ARTICLE · 14 APRIL 2016

A Reminder That Modern Large Partnerships Are Still Partnerships

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Large law and accounting firms ostensibly bear little resemblance to traditional, small-scale partnerships.

CanadaCorporate/Commercial Law
James Heelan
James Heelan
Jonathan Bell
Jonathan Bell
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Large law and accounting firms ostensibly bear little resemblance to traditional, small-scale partnerships. Nevertheless, in the recent Ontario Superior Court decision in Tim Ludwig PC v BDO Canada LLP, 2016 ONSC 2225, a partner's expulsion serves as an important reminder that the bedrock principles of 19th century partnership law continue to apply to all partnerships today.

Facts

In a decision released on March 31, 2016, Justice Mew considered a summary judgment motion brought by Tim Ludwig, who was formerly a partner of the defendant accounting firm, BDO Canada LLP. Mr. Ludwig's claim was for breach of contract as a result of his forced retirement from the firm in 2014.

On July 8, 2014, Mr. Ludwig was informed by two other partners of BDO that he was required to resign, pursuant to a decision of the firm's CEO. The reasons cited for his expulsion were purely economic, based on market decline. When Mr. Ludwig refused to agree to retire, BDO invoked the firm's

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