Comino v Cominos

The plaintiff, Comino, sued the defendants, Cominos, seeking unpaid salary for his role as a salaried partner in a partnership. The dispute arose from the dissolution of the partnership, with Comino alleging that he was entitled to a salary despite the partnership’s winding-up. The matter was heard in the Supreme Court of Victoria. The court had to determine the legal status of Comino as a salaried partner and whether this entitled him to unpaid salary upon the dissolution of the partnership.

The court examined the terms of the partnership agreement, noting that Comino was designated as a salaried partner with a fixed salary. It was necessary to ascertain whether this designation created a contractual obligation for the payment of salary even after the partnership’s dissolution. The court found that Comino’s role as a salaried partner meant he was entitled to his salary as per the agreement, irrespective of the partnership's winding-up. The court relied on the principle that a salaried partner's right to remuneration is a debt owed by the partnership to the partner.

The court held that Comino was entitled to his unpaid salary and interest accruing up to the date of judgment. It found that the defendants were liable to pay Comino $147,635, including $55,941 for interest. The court’s decision underscored the importance of adhering to the terms of the partnership agreement, particularly concerning the designation and rights of a salaried partner. This ruling affirms that a salaried partner’s entitlement to salary continues upon the dissolution of the partnership.