Question
Jane, an employee of a legal partnership is one day promoted to the position of salaried partner.Jane is given a substantial increase in her salary
Jane, an employee of a legal partnership is one day promoted to the position of salaried partner.Jane is given a substantial increase in her salary but does not share in profits.When she has generated more than an agreed amount of fees, she is to be paid a bonus.
She attends some partners' meetings where she is invited to voice her opinion, but she does not vote when the decisions are being made.Jane is never shown the partnership accounts nor is she invited to meetings where the accounts are discussed, and decisions are made as to distribution of profits amongst the partners.
Her new status is recognised by putting her name on the firm letterhead as partner and the web site features her name and photograph and describes her as a partner in the firm.
One of the partners, Harry, makes a serious mistake and the partnership is sued in tort for $1.5million.
It is a law of business organisations question and needs to be answered in the ILAC format.
Assuming the court action is successful, advise Jane what her position would be in relation to the tort liability of $1.5million?
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