Chambers

Exchange Chambers acts in multi-million pound partnership dispute

The chambers said it is anticipated that the ultimate sum the defendants will have to pay will exceed £1m.

Stephen Connolly, a senior junior from Exchange Chambers, has acted for a successful claimant in proceedings concerning shares of a multi-million pound Grade II Listed Building in Central Manchester, called Chatham Buildings. 

Instructed by Daniel Stern of Slater Heelis, the proceedings surrounded the question of who, between the claimant and the various defendants, had lawfully exercised their option to purchase the other’s share in that building.

Exchange Chambers said the defendant denied the claimant’s joint ownership of Chatham Buildings and dissolved various different dates over a 35 year period.

Connolly established that the claimant had “validly and lawfully” exercised his option to purchase Chatham Buildings.

The claimant was also reportedly successful in obtaining findings of dishonesty, fraud and breach of the duty of “utmost good faith” against his former partner. Additionally, the claimant obtained findings of dishonest assistance and knowing receipt against a number of the other defendants.

The judgment means the claimant can now take possession and control of Chatham Buildings which he was reportedly entitled to when he exercised his option to purchase in 2018.

There will now be a further trial at which accounts and enquiries will be taken to establish the precise level of compensation that the defendants must pay to the claimant for the misuse of Chatham Buildings, and for the failure to account to the claimant for the rental and other income generated from Chatham Buildings.

Exchange Chambers said it is anticipated that the ultimate sum the defendants will have to pay will exceed £1m.

The partnership proceedings were conducted over 10 days in the Business and Property Courts in Manchester, and it related to events dating back to the early 1980s.

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