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Dubai Aluminium Co Ltd v Salaam

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the very act he did. The reason for this lies in the legal policy underlying vicarious liability. The underlying legal policy is based on the recognition that carrying on a business enterprise necessarily involves risks to others. It involves the risk that others will be harmed by wrongful acts committed by the agents through whom the business is carried on. When those risks ripen into loss, it is just that the business should be responsible for compensating the person who has been wronged.
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carry on businesses, that sometimes their agents may exceed the bounds of their authority or even defy express instructions. It is fair to allocate risk of losses thus arising to the businesses rather than leave those wronged with the sole remedy, of doubtful value, against the individual employee who committed the wrong. To this end, the law has given the concept of 'ordinary course of employment' an extended scope.
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say, Mr Amhurst had no authority from his partners to conduct himself in this manner. Nor is there any question of conduct of this nature being part of the ordinary course of the business of the Amhurst firm. Mr Amhurst had authority to draft commercial agreements. He had no authority to draft a commercial agreement for the dishonest purpose of furthering a criminal conspiracy.
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22. This policy reason dictates that liability for agents should not be strictly confined to acts done with the employer's authority. Negligence can be expected to occur from time to time. Everyone makes mistakes at times. Additionally, it is a fact of life, and therefore to be expected by those who
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21. However, this latter fact does not of itself mean that the firm is exempt from liability for his wrongful conduct. Whether an act or omission was done in the ordinary course of a firm's business cannot be decided simply by considering whether the partner was authorised by his co-partners to do
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Salaam's solicitors were seeking contribution for damages because of their former client. Mr Salaam had defrauded Dubai Aluminium Co Ltd. Mr Salaam's solicitors were Amhurst Brown Martin & Nicholson, and they had drafted documents for him. Amhurst's had been sued and had settled a $ 10m claim.
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20. Take the present case. The essence of the claim advanced by Dubai Aluminium against Mr Amhurst is that he and Mr Salaam engaged in a criminal conspiracy to defraud Dubai Aluminium. Mr Amhurst drafted the consultancy agreement and other agreements in furtherance of this conspiracy. Needless to
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had been wrong to take account of the firm's innocence when assessing Mr Salaam's contribution for a settlement. Given that Mr Salaam still possessed the proceeds of fraud it was equitable for him to pay the surplus for the firm's $ 10m liability.
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he said that the claim could be based on dishonesty, like for liability in assisting breach of trust. At the same time it could ‘be based simply on the receipt, treating it as a restitutionary claim independent of any wrongdoing.’
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held that Amhurst's was entitled to a contribution (which amounted to indemnity) from Mr Salaam. The 1890 Act was not restricted to tortious wrongs, and Mr Amhurst's actions were in the ordinary course of the business
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dissented. Mr Salaam argued that wrongful acts that a partnership was vicariously liable for only extended to common law torts, not equitable wrongs like dishonest participation in a breach of trust.
363: 112:, held that the firm was not vicariously liable for the dishonest acts of Mr Salaam, and so was not entitled to a contribution from Mr Salaam for settling the claim by Dubai Aluminium. 29: 253: 347: 131: 224: 80: 101: 180: 305: 413: 119: 319: 267: 217: 192: 83:. This required showing that Amhurst's was liable for wrongful acts by Mr Anthony Amhurst, under the 293: 137: 210: 115: 84: 8: 281: 67: 323: 376: 309: 271: 367: 353: 337: 63: 39: 407: 241: 149: 173: 169: 142: 202: 186: 152:
gave the first judgment and said the following on vicarious liability:
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case, concerning also breach of trust and dishonest assistance.
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Then, they sought contribution from Mr Salaam under the
141:). So the firm was jointly liable for the damage, and 405: 218: 195:agreed with Lord Nicholls and Lord Millett. 255:Belmont Ltd v Williams Furniture Ltd (No 2) 225: 211: 232: 349:Criterion Properties plc v Stratford LLC 364:Arthur v AG of Turks and Caicos Islands 81:Civil Liability (Contribution) Act 1978 406: 206: 13: 306:El Ajou v Dollar Land Holdings plc 183:gave a short concurring judgment. 95: 14: 425: 125: 334:Dubai Aluminium Co Ltd v Salaam 172:gave a concurring judgment. In 60:Dubai Aluminium Co Ltd v Salaam 21:Dubai Aluminium Co Ltd v Salaam 392: 320:BCCI (Overseas) Ltd v Akindele 1: 7: 268:Agip (Africa) Ltd v Jackson 198: 189:agreed with Lord Nicholls. 90: 10: 430: 122:acted for the solicitors. 374: 360: 344: 330: 316: 302: 290: 278: 264: 250: 245:(1873-74) LR 9 Ch App 244 238: 51: 46: 35: 25: 20: 386: 294:Baden v Societe Generale 138:Lister v Hesley Hall Ltd 73: 414:English trusts case law 167: 233:Knowing receipt cases 154: 120:Jonathan Sumption QC 100:The majority of the 85:Partnership Act 1890 68:vicarious liability 52:Vicarious Liability 377:English trusts law 383: 382: 56: 55: 421: 399: 396: 350: 256: 227: 220: 213: 204: 203: 18: 17: 429: 428: 424: 423: 422: 420: 419: 418: 404: 403: 402: 397: 393: 389: 384: 379: 370: 356: 348: 340: 326: 312: 298: 286: 282:Re Montagu’s ST 274: 260: 254: 246: 234: 231: 201: 128: 102:Court of Appeal 98: 96:Court of Appeal 93: 76: 12: 11: 5: 427: 417: 416: 401: 400: 390: 388: 385: 381: 380: 375: 372: 371: 361: 358: 357: 345: 342: 341: 331: 328: 327: 317: 314: 313: 303: 300: 299: 291: 288: 287: 279: 276: 275: 265: 262: 261: 251: 248: 247: 239: 236: 235: 230: 229: 222: 215: 207: 200: 197: 132:House of Lords 127: 126:House of Lords 124: 97: 94: 92: 89: 75: 72: 66:is an English 54: 53: 49: 48: 44: 43: 37: 33: 32: 30:House of Lords 27: 23: 22: 9: 6: 4: 3: 2: 426: 415: 412: 411: 409: 395: 391: 378: 373: 369: 366: 365: 359: 355: 352: 351: 343: 339: 336: 335: 329: 325: 322: 321: 315: 311: 308: 307: 301: 296: 295: 289: 284: 283: 277: 273: 270: 269: 263: 258: 257: 249: 244: 243: 242:Barnes v Addy 237: 228: 223: 221: 216: 214: 209: 208: 205: 196: 194: 190: 188: 184: 182: 181:Lord Hobhouse 178: 175: 171: 166: 162: 158: 153: 151: 150:Lord Nicholls 147: 144: 140: 139: 133: 123: 121: 117: 113: 111: 107: 103: 88: 86: 82: 71: 69: 65: 62: 61: 50: 45: 41: 38: 34: 31: 28: 24: 19: 16: 394: 362: 346: 333: 332: 324:EWCA Civ 502 318: 304: 292: 280: 266: 259:1 All ER 393 252: 240: 191: 185: 179: 174:obiter dicta 170:Lord Millett 168: 163: 159: 155: 148: 136: 129: 114: 99: 87:section 10. 77: 59: 58: 57: 15: 193:Lord Hutton 42:, 2 AC 366 310:EWCA Civ 4 272:EWCA Civ 2 187:Lord Slynn 297:1 WLR 509 110:Aldous LJ 36:Citations 408:Category 199:See also 116:Turner J 106:Evans LJ 91:Judgment 47:Keywords 368:UKPC 30 354:UKHL 28 338:UKHL 48 64:UKHL 48 40:UKHL 48 398:QB 113 285:Ch 264 387:Notes 143:Rix J 74:Facts 26:Court 130:The 108:and 410:: 104:, 226:e 219:t 212:v 135:(

Index

House of Lords
UKHL 48
UKHL 48
vicarious liability
Civil Liability (Contribution) Act 1978
Partnership Act 1890
Court of Appeal
Evans LJ
Aldous LJ
Turner J
Jonathan Sumption QC
House of Lords
Lister v Hesley Hall Ltd
Rix J
Lord Nicholls
Lord Millett
obiter dicta
Lord Hobhouse
Lord Slynn
Lord Hutton
v
t
e
Barnes v Addy
Belmont Ltd v Williams Furniture Ltd (No 2)
Agip (Africa) Ltd v Jackson
EWCA Civ 2
Re Montagu’s ST
Baden v Societe Generale
El Ajou v Dollar Land Holdings plc

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