This document discusses a case involving the Good, Better & Best (GBB) group of business consulting firms. GBB is organized as partnerships or limited companies across multiple countries. They coordinate globally and share employees. A local company sued GBB-X for providing negligent marketing information, but GBB-X had few assets. The court determined that GBB qualifies as a common enterprise because the firms share management, so the local company could sue other GBB firms as codefendants.

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2. 1-Facts:
Good, Better & Best (GBB)
is the name used by several
firms of business
consultants located in many
different countries.
The firms are organized
either as partnerships or
limited liability stock
companies depending on
the local laws.
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3. The senior partners or
presidents of the several firms
meet on a regular basis to
coordinate worldwide advertising
and standardize the policies of
the several firms.
The firms exchange information
and they share employees as the
need may arise.
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4. The multinational clients are
assured that they will be
served by the local GBB firm
in any country where the
client does business.
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5. 2-Key Problem:
One of the GBB firms in Country X (GBB-X) provided marketing
information to local company, the information had been negligently
prepared by (GBB-X) and it contained gross errors.
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6. Relying on that information,
Local made several
disastrous investments and
lost most of its net worth.
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7. local wants to sue (GBB-X), but it knows that GBB-X
has few assets, SO:
Will Local company be successful if it asks the court
in which it is suing the GBB-X firm to join others of
the GBB firms as codefendants?
Would the choice of the court in which GBB brings
its suit be important in deciding this?
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8. 3-Legal Applied Rule:
Common Enterprise
Each member of a common enterprise will have
liability for the conduct of the entire enterprise.
Which means:
When individuals or companies including subsidiaries function as
part of a common enterprise, Courts will treat them as if they
were members of a joint venture or partnership with each of
them having joint or joint and several liability for the obligations
of the entire enterprise.
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9. Common Enterpr ise
How to determine whether person or firm are members of a common enterprise?
A-Courts look at the of the Intent of the parties.
B-If there are no formal agreements creating a partnership or a joint venture,
the courts will consider these factors in determining the intent:
1-Sharing of Profits or Losses.
2-Sharing the Management.
3-Joint ownership of the business.
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10. 4-Application:
The Court determined the intent through:
Sharing In The Management
So:
GBB-X firm is a member in the GBB common enterprise
which will be considered as codefendant.
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11. Thank You
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