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ARTICLE · 20 JULY 2011

New Partnership – Old Liabilities?

MacRoberts
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In the recent case of Sim v Howat & McLaren [2011] CSOH 115, the Commercial Court of the Court of Session has undertaken a detailed examination of Partnership Law in Scotland, before ruling that a new partnership constituted by an incoming partner is liable for the prior business debts of the business.

United KingdomEmployment and HR
Julie Hamilton
Julie Hamilton
Neil Kennedy
Neil Kennedy
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In the recent case of Sim v Howat & McLaren [2011] CSOH 115, the Commercial Court of the Court of Session has undertaken a detailed examination of Partnership Law in Scotland, before ruling that a new partnership constituted by an incoming partner is liable for the prior business debts of the business.

Facts

The action concerns the liability of Pattison & Sim to a pension fund in respect of an employee of the firm who had retired in 1998.  The Pursuer, William Sim, had been a partner in Pattison & Sim until his retirement in 2006.  Between 1995 and 1999 the firm comprised Mr Sim and David Howat (the First Defender).  In 1999 Bridget McLaren (the Second Defender) joined the partnership. 

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