Question 3 (15 marks) Mr Wong was one of the partners of a local law firm,...

Question 3

Mr Wong was one of the partners of a local law firm, namely Wong, Lee & Chan. A few months ago, while carrying out his duty as a partner, Mr Wong was introduced to Tom, a manager of NanoLife Insurance Ltd (“NanoLife”), which is a client of the firm. Occasionally Mr Wong was invited by Tom to hold seminars for NanoLife’s staff training programme. In one of the seminars, Mr Wong met Jack who was the head of the legal department in NanoLife. Jack and Mr Wong found out that they graduated from the same school of law and soon became good friends. Later Mr Wong resigned from Wong, Lee & Chan and set up his own practice. NanoLife became one of the main clients of Mr Wong’s new law firm.

Required:

(a) Explain whether Mr Wong breached his duty as a partner of Wong, Lee & Chan and discuss the consequence of the breach, if any.

(b) Apart from the duty of a partner mentioned in 3(a) above, explain other duties of a partner under the common law.

Expert Solution

(a) Yes, Mr. wong has breached his duty as a partner of Wong, lee & chan.

Facts of the case: As Mr. wong was introduced to "Nanolife" while performing his duties as a partner of the firm. After that, he met Mr.Jack who is legal head of the Nanolife and they will become friends. Soon after this Mr. wong started his own practice and Nanolife became his client of his new firm.

Duties of partners: It is the main duty of a partner of any firm that not to make any personal profit or to compete. A partner should not personal profits through reputation/goodwill of firm and should not engage himself in the same competing service/business activities.

Conclusion: Here,Mr. wong has breached his duty beacause he has made personal profits through Nanolife which was the client of Firm in which he was also a partner.He should handover personal profits which he has earned through Nanolife to the firm.

(b) Other duties of a partner :

1) A partner has to observe good faith

2) A partner must Idemnify the firm for any loss caused by his act while performing his duties.

3) A partner must perform his duties with due diligence.

4) A partner must not use firm 's property for his personal purpose.

5) A partner must act under his authority and not to assign his duties to anyone.

ekkarill92 answered 1 year ago

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