GEORGE SMITH v JOHN MACKENZIE (Court of Session)

William Smith, a partner of Duguid Ingram and Company, having, in 1822, sold his interest in the company to his partners, notified, in one of the numbers of the Edinburgh Gazette, that he ceased to be a partner,—which was the only notice given of his retirement from the concern, by public advertisement or otherwise.

Sequestration was awarded against Duguid Ingram and Company in July 1827. The creditors of the company were afterwards advised, that, in consequence of William Smith's neglect to give sufficient intimation of his having withdrawn his interest in the concern, his liability for its debts remained; and accordingly, Smith having acquiesced in this opinion, his estate was sequestrated, and he became bound to pay a composition on the debts due to the creditors of Duguid Ingram and Company, as well as those owing by him individually.

Duguid Ingram and Company had drawn a bill for L.29, 17s. upon John Mackenzie, dated 2 March 1827, and payable one hundred days after date. The bill, after acceptance, was indorsed by the drawers to William Smith, the former partner of the company, and by him, ‘without recourse,’ to George Smith, his father. The bill not being paid, was protested, on the 13 June 1827, at the instance of George Smith, by the indorser, William Smith, in his character as notary.

Mackenzie, the acceptor, brought a suspension of a charge on this bill, inter alia, upon the ground that William Smith was legally disqualified from protesting the bill, being at the time a partner of Duguid Ingram and Company, and consequently the diligence proceeding thereon was inept.

The Lord Ordinary ‘repelled the objection to the regularity of the protest, found the letters orderly proceeded, and the suspender liable in expenses.’