Post-dissolution profits

Sandau v Gill ChD TLR 7 February

The two parties purchased and converted a property to run as an old people’s residential home. The claimant borrowed a large part of his share of the capital investment from the defendant. The agreement was for the claimant to manage the home and that he would be paid a salary out of the net profits which would then be divided equally between the parties. It was also agreed that the partnership assets would be shared equally After the partnership was dissolved, the defendant took over the running of the home. At the date of the dissolution the profits had been insufficient to repay the claimant’s debt to the defendant by some £63,000. However, as a result of the defendant carrying on running the business, it moved into profit. In the claimant’s proceedings to wind up the partnership he claimed he was entitled to a half share of the post-dissolution revenue profits.