Business Law
In the case of Geary v Rankine [2012], The Court of Appeal upheld a decision that a business was not intended to be run as a partnership.
The case revolved around a couple – the Claimant (G) and the defendant (R).
They had been together a number of years and had a child together. They had never married as G had still been married to her former husband.
R purchased a guest house with the intention of having it run by a manager. When this did not work out he moved to the guest house and ran it himself. The business has been purchased and run in R’s sole name. G subsequently moved to the guest house and assisted with cleaning and accounting. R made it clear that he did not want G to be included in case the business failed. He also excluded her from his Will as she was still married.
When the couple separated G claimed that the business had been run as a partnership and as such she should have a beneficial interest in it. The judge, and indeed the subsequent appeal, ruled that the evidence supported that there had been no common intention for the business to be run as a partnership. In particular there was no evidence of shared profits and no shared bank account and the business had been bought by R with his own money.
If you would like advice on partnerships and potential disputes please contact us.
Jacqueline Penfold
Tina Ripley
Please note the above is for information purposes only and is intended to be a short summary. It should not be treated as a comprehensive guide and should not be acted on without qualified legal advice.
