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Z was a limited partner in a solicitors' practice, Zecklers LLP, with his brother. ARP managed the Assigned Risks Pool scheme. ARP served a statutory demand Z for £147,000 odd in relation to unpaid premiums. Z applied to set it aside, whilst not disputing the existence or amount of the debt but argued that the scheme was ultra vires, and that in any event he was not personally liable for the debts of the firm. The chief registrar dismissed the application and Z appealed. Nicholas Strauss QC (sitting as a deputy judge of the High Court) allowed the appeal. Whilst it was a professional obligation on Z to ensure that the firm was insured, there was nothing in the contract that rendered the limited partners personally liable for the premiums.
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