The Court of Appeal in Eclipse 35 has held that a film leasing partnership was not trading. In reaching this conclusion, the court confirmed that whether an activity constitutes a trade depends upon evaluating the facts and relating those facts against the background of the applicable legal principles. When the court looked at the partnership’s activities as a whole, it found they were insufficient to constitute a trade. This case could have very serious consequences for the partners in Eclipse 35, and will be of interest to the appellants in the other cases where trade is an issue which are working their way through the court system.
The Court of Appeal in Eclipse 35 has held that a film leasing partnership was not trading. In reaching this conclusion, the court confirmed that whether an activity constitutes a trade depends upon evaluating the facts and relating those facts against the background of the applicable legal principles. When the court looked at the partnership’s activities as a whole, it found they were insufficient to constitute a trade. This case could have very serious consequences for the partners in Eclipse 35, and will be of interest to the appellants in the other cases where trade is an issue which are working their way through the court system.