Partner blocks bank account

TF writes: I was a partner in a business that was dissolved in 1995 but then ran the business as a sole trader. The partnership bank account was left with enough money to pay the partnership liabilities, including tax. This was agreed and the liabilities paid. At the date of the dissolution I wrote to customers who paid by standing order to complete a new form for the new business and new bank account. Some customers failed to complete the new form and some standing orders were credited to the old account. My former partner has refused to agree the transfer of the cash out of the old account and the bank will not transfer funds on my instructions. How can I recover the money?

Answer

The best way would be to negotiate a deal with your former partner. It could be he does not understand what the money relates to and believes the funds to be partnership funds left behind to pay partnership liabilities. The amount of money will obviously determine the time and effort you should put into resolving this problem. If the money is from your customers, it belongs to your customers and you will need their assistance to recover the money. Your customers will need to write to the old partnership asking for the money to be returned to them. If your former partner refuses to co-operate with this request they will need to start legal proceedings against him. They should also apply for an order of costs against your former partner so all costs are paid by him.