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Making sure you sue the right people in WA Business Disputes

Wednesday, September 7, 2016

Make sure you sue the right person in a business dispute in Western Australia – have you sued all of the partners in the business?

Section 16 of the Partnership Act makes partners in a business jointly liable and not jointly and severally liable for debts.  This is a common misconception.  Sometimes people make a decision to sue one partner and not another and then do not understand that they are then waiving the opportunity to ever take legal action in the future against the partner who was not sued in the first place.

If you have a debt owing to you by two partners and you decide to sue only one of the partners in court then the cause of action merges in the judgment you obtain and you cannot then proceed at a later date against the second partner or any other partners if there are more than two.

Liability limited by a scheme approved under Professional Standards Legislation.

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