Partnership 333The firm’s liability for a partner’s torts
Here we consider whether the partnership as a whole is liable if one partner commits a tort.
(The nature of a tort was explained on pp. 223 – 4.) Let us assume, for example, that partner
G in the firm GHI accidentally crashes his car into a bus, injuring several passengers. Can
the injured passengers sue H and I as partners of G? Or are they restricted to suing G alone?
Section 10 provides the answer:
Where, by any [tort]...of any partner acting in the ordinary course of the business of the firm, or
with the authority of his co-partners, loss or injury is caused to any person not being a partner in
the firm...the firm is liable therefor to the same extent as the partner [who committed the tort]...
It can be seen that the partnership is only liable for another partner’s torts if either:
(i) the tort was committed in the ordinary course of the firm’s business; or
(ii) the other partners authorised the tort.
So a firm of accountants would be liable for a partner who stole money which he or she had
been given to invest for a client. Investing money would be in the ordinary course of the
firm’s business, and stealing money would amount to the tort of conversion. However, the
Figure 12.1The liability of fellow partners (B and C) on a contract which a partner (A) made
with T