24 May 2019
Partnership - Disputes arising from dissolution
A partner believes they are owed money following the dissolution of a partnership. There was no written partnership agreement. Can they sue for it as a debt in the Magistrates' Court or must proceedings be commenced in the Supreme Court?
Thank you for the question.
In the absence of a written agreement, Division 4 of Part 2 of the Partnership Act 1958 (Vic) sets out the process to be followed in the dissolution of a partnership. Section 48 sets out the rules on how the assets of the partnership are to be disposed of.
If the dispute cannot be resolved between the partners, then the correct venue for any claim by one partner against the other will be determined by the amount being claimed. The Magistrates’ Court can hear civil disputes up to the value of $100,000 arising from debts, claims for damages, other monetary disputes or equitable relief.
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