Reynolds v Medway [2013] NSWSC 206

Two parties entered into partnership to purchase property and explore its commercial opportunities and following its breakdown, one partner sought an order for statutory sale.

The court found no agreement to undertake any specific work in relation to the property and no specified term preventing the dissolution of the partnership by notice. The court found that it was dissolved on the date the summons was filed by the disgruntled partner. Section 39 of the Partnership Act provides that on dissolution, every partner is entitled to have the property sold and applied to pay debts, with the surplus distributed.

The court also found that regardless of the partnership, a co-owner is entitled to have a trustee appointed to sell the property in accordance with section 66G Conveyancing Act. The court has a discretion to refuse an order for sale if it would be inconsistent with some proprietary right, or some contractual or fiduciary obligation. The court found no conflict here, no agreement between the parties which would be breached by an order for sale and so ordered the sale.

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