How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11750
Experience:  30 years as a practising solicitor.
31090051
Type Your Law Question Here...
JGM is online now

I am a vet, I retired from a 50% partnership to relocate to

Resolved Question:

I am a vet, I retired from a 50% partnership to relocate to New Zealand on 31/03/2013. I am still awaiting payment which is now overdue.The partnership agreement states that on any money owed, interest at the partnership interest rate accrues from the succession date which was 5 months ago.The delay is due to the business accountant not responding to the following questions despite several requests by myself and my solicitor, and my partners solicitor who are doing the conveyancing of the freehold properties. (1) What is the partnership interest rate?Is it 6% (my solicitor thought there may be a standard rate in legislation, perhaps The Partnership Act. (2) Is the interest rate calculated monthly and then interest applied to additional amount at the end of each month? (3)Does my partner owe me any rent on the properties (solicitors cant do conveyancing as accountant has not responded to queries regarding interest due)

Many thanks

Ross XXXX

Submitted: 3 years ago.
Category: Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
Under the Partnership Act 1890 there is no entitlement to interest on capital. Any interest due to a partner has to be as stated in the partnership agreement between the partners or alternatively where the partnership has been ended in any minute of dissolution of partnership.
So in the absence of a contract to say otherwise, the phrase "interest at the partnership rate" is meaningless and your solicitor should know that. Were there to be recourse to the court for recovery of the sums due to you then you could charge the current commercial rate of interest which is Bank of England rate plus 8% calculated daily but that would be a rate charged on a "default" basis and from what you say, the other partner is not to blame here.
I think you have to demand answers from the professionals who are supposed to be representing you. The law of partnership is contained in the Partnership Act 1890 and should be well known to your solicitor.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
JGM and 3 other Law Specialists are ready to help you