Member exits

partner disputes - whistleblowing

£3.4m LLP member whistleblowing claim permitted to proceed

ByPeter Garry

Losses resulting from expulsion following whistleblowing can be very substantial, and there is no statutory limit on the amount of compensation that can be awarded.

But in some cases the expulsion of the whistleblower may:

  • be based (at least on the face of the expulsion documentation) not on the whistleblowing, but on different, lawful grounds, or
  • be achieved by way of resolution of the other members under the terms of the LLP deed, under provisions requiring no grounds to be stated.

In such circumstances it may be argued by the continuing LLP members that the chain of causation between the whistleblowing and the whistleblower’s loss brought about by the expulsion of the whistleblower has been broken, and that accordingly no recoverable loss arises.

The Court of Appeal decision earlier this year in Wilsons Solicitors & others v Roberts brings such scenarios sharply back into focus.

Predator partner

The evolution of the partnership and the predator partner

ByPeter Garry

(This article was first published on the Kluwer Mediation Blog on 7 March 2017)

…the typical all-powerful and largely irreplaceable partner of yore has evolved to become a powerless, placeholder partner, keeping the chair warm for the next incumbent of his post. He is the counterpoint to, and the prey of, the predator partner.

This has radically altered how many partnership disputes, especially in the professions, tend to arise and are resolved.

Is member liability in Limited Liability Partnerships really limited?

Is member liability in Limited Liability Partnerships really limited?

ByPeter Garry

There are many circumstances in which an LLP member can end up with personal liability for either individual liabilities of the LLP or a share of the LLP’s losses over a particular period. This article examines just a couple of related examples as to how LLP members can end up bearing very substantial LLP losses….

5 questions for professional practices following the Seldon age discrimination judgment

5 questions for professional practices following the Seldon age discrimination judgment

ByPeter Garry

“… if the answer to any of these questions is, “No,” there may be a problem …” Following the Supreme Court judgment in Seldon, how do professional practices quickly determine whether or not they should be taking advice on their current partner or LLP member retirement provisions, with a view to minimising the risk of…

LLP + no LLP members’ agreement = litigation

LLP + no LLP members’ agreement = litigation

ByPeter Garry

The recent case of Eaton v Caulfield & others (an unfair prejudice petition brought under section 994 of the Companies Act 2006, coupled with a just and equitable winding up petition under section 122(1)(g) of the Insolvency Act 1986) highlights the difficulties faced by LLP members who do not have an LLP members’ agreement setting out their…

Senior partner-itis

Senior partner-itis

ByPeter Garry

“… Typically the senior partner becomes complacent about the fabulous hand of cards that life has dealt him and starts to presume that he can do no wrong …” It may come as no surprise that amongst professional practices that have no provision in their partnership deed for regular senior partner elections, an unusually high proportion…

The 10 most important partnership or LLP deed clauses

The 10 most important partnership or LLP deed clauses

ByPeter Garry

…Recessions bring out the worst in people… A recession has a way of exposing weaknesses in legal drafting. As practices try to respond to the economic climate, management teams consult the fine print of their partnership deed or LLP members’ agreement, and may find it wanting. This article describes and explains the importance of a…

Partners in a boardroom

Who is liable for an LLP legal practice run-off premium?

ByPeter Garry

“… the number of insureds under a practice’s professional indemnity insurance can easily double every fifteen or so years …” (First published in the Law Society Gazette on 20 August 2009) Last year a letter dropped though the door of numerous former employees of Merricks LLP, putting them on notice that if certain of the…