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England and Wales High Court (Chancery Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Lie v Mohile [2015] EWHC 200 (Ch) (05 February 2015) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2015/200.html Cite as: [2015] EWHC 200 (Ch) |
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CHANCERY DIVISION
ON APPEAL FROM HER HONOUR JUDGE WALDEN-SMITH SITTING IN THE CENTRAL LONDON COUNTY COURT
Rolls Building Fetter Lane, London, EC4A 1NL |
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B e f o r e :
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Dr Sonny Lie |
Appellant/ Claimant |
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- and - |
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Dr Rajan Mohile |
Respondent/ Defendant |
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Mr Martin Palmer (instructed by Attwood & Co.) for the Respondent / Defendant
Hearing dates: 4th December 2014
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Crown Copyright ©
Mr Justice Birss:
Ground 1: That in considering the effect of Dr Mohile's notice in 2011, the judge did not give the partnership agreement contractual effect. The notice was a repudiatory breach of the agreement and entitled Dr Lie to expel Dr Mohile.
Ground 2: That the judge was wrong to find that Dr Mohile was not in breach of his duty of utmost good faith.
Ground 3: That the judge erred in her construction of "grave" and /or "persistent" breach and ought to have held that the 2011 notices were a grave and persistent breach within clause 21(i)(a) of the partnership agreement, entitling Dr Lie to serve a notice expelling Dr Mohile.
Ground 4: That the judge erred in finding that Dr Lie had affirmed Dr Mohile's breaches.
Ground 5: That the judge erred in making findings that were not pleaded or in evidence
Ground 6: that the judge erred in accepting an inconsistent pleading from Dr Mohile in that his original defence asserted that the partnership was dissolved by the 2011 notices whereas his Counterclaim seeks dissolution on the equitable ground.
Grounds 1, 2 and 4
… Suppose that, by March in a particular year, partner B had so conducted himself as to render it impracticable for partner A to continue in partnership with him. Nonetheless, partner A soldiered on for three months before deciding to throw in the towel and seek a dissolution under Section 35(d). His 'soldiering on' might in contractual terms have amounted to an affirmation, after conduct putting him to an election to determine or to carry on with the contract. But it will not necessarily do so under Section 35(d) if, for example, continuation of the business remained as unreasonably impracticable at the end of June as it had been at the end of March. …
Of course, if partner B had in the meantime in some way mended his ways, continuation in business together might no longer be impracticable. Or, if B relied to his detriment upon an implied assertion that partner A would not treat B's conduct until the end of March as giving rise to grounds for dissolution, then that might be a reason why, as a matter of discretion, a dissolution could be refused. But that is an altogether more flexible test than the necessarily rigorous analysis which may be applied to an allegation of affirmation, which operates by reference to concepts of election, and requires no detriment to be shown at all.
Ground 3 – grave and/or persistent breaches
Ground 5
Ground 6
Conclusion on the appeal
The September 2014 order