From Australia’s Jewish past
Patrick Reginald Levy – Patrick Partners Stockbrokers and Sydney’s largest brokerage house of the seventies
Patrick was born on 26 August 1900 in Newcastle, New South Wales.
Patrick Reginald Levy
He was the youngest of three sons of Septimus Ralph Levy, a leading figure in Sydney business and the community, and his Melbourne-born wife, Gwendoline. His father was Director and Chairman of the Newcastle & Hunter River Steamship Company, Deputy Chairman of Tooth & Co Ltd, and on the death of his brother-in-law, George Judah Cohen, became Chairman until he died in 1934. He was also Chairman of Directors of Nestle and Anglo-Swiss Condensed Milk Co (Australasia) Limited, chosen by the visiting President of the Swiss Company on a visit to Sydney, a director of J A Bull and Co Ltd, Bennie S. Cohen (NSW) Ltd, (Lloyds brokers), and several other companies. He was also a member of the board of management of the Great Synagogue. Throughout his life, he maintained a great interest in sport especially cricket and had not missed an important cricket fixture in Sydney for many years.
The family moved to England to be near their eldest son, Maitland, an officer in the Irish Guards and a recipient of the Military Cross, who was killed in action in 1918. Patrick attended Repton School, Derbyshire, for two years. Returning to Australia, he settled in Sydney and married with Jewish rites Helen Watt Laidley on 28 June 1923 at his parents’ home in Woollahra. The couple had one son and, unfortunately, they divorced in 1938.
Patrick showed an interest in stockbroking and his father arranged for him to work with Ernest Davis a stockbroking company. On 30 June 1924, he became a member of the Sydney Stock Exchange and a partner in Ernest L Davis & Co. He operated as a sole trader from 1927 to 1930, when he joined Richard Allen in partnership.
Enlisting in the Australian Imperial Force on 15 July 1940, Patrick gained rapid promotion to warrant officer, class two, in the 2/18th Battalion, and was sent to Malaya. When Singapore fell in February 1942, he became a prisoner of war and was sent to work on the Burma-Thailand Railway. He returned to Sydney in 1945 and was discharged from the AIF in January 1946. He married a second time, divorcing in 1947 and marrying a third time in 1952.
Patrick and Richard Allen took advantage of the economic boom after the war. Patrick continued to trade on the floor taking an interest in underwriting and advising clients. The firm merged with Eccles, Reynolds & Dowling in 1953 to form Patrick & Co. The Sydney Stock Exchange committee regarded, using a first name as unconventional but allowed it and the company opened an office in Wollongong in 1955. In 1959, Patrick & Co. advocated (as others had done earlier) that the Exchange move from the ‘call’ trading system to a ‘post’ system. This change was put into effect the next year. Patrick became a senior member of the Exchange in 1965. With Allen and A P (‘Perk’) Reynolds, he tried to ensure that, although rapid, Patrick’s growth was soundly based. By 1970, when the firm changed its name to Patrick Partners, it was Sydney’s largest brokerage house. In July 1970, he retired as an equity partner and remained a consultant. He resigned from his seat on the Exchange in 1974 but did not manage to sell it until 1976. Although Patrick was not responsible for the company’s crash and insolvency in 1975, Dr Daly, a first-time investor with Patrick Partners was not advised of their insolvency when he invested with the company. In July 1975, Patrick Partners ceased trading, and Dr Daly sought compensation from the Fidelity Fund of the Sydney Stock Exchange. The primary issue in dispute was whether a client of a stockbroking firm could recover monies from the firm to which they had lent money, under the context that the firm failed to inform them of their financial difficulties, and subsequently could not repay the loan. This issue delved into the aspects of fiduciary obligations and constructive trusts. The decision was determined that Patrick Partners had a fiduciary duty to disclose their financial situation to Dr Daly, which they breached. As a result, the contract and transfer of funds were considered voidable, and Patrick Partners was deemed to hold the transferred money on a constructive trust for Dr Daly.
The decision emphasised that equity intervenes to prevent a fiduciary from retaining or acquiring property or money under a contract entered in breach of fiduciary obligations. Therefore, a person lending money to a fiduciary, who obtains the loan without discharging their fiduciary duty, is entitled in equity to avoid the contract and recover the money lent, through tracing if necessary. The case caused a significant impact on the wider legal landscape, especially concerning the understanding and application of fiduciary duties and constructive trusts in financial transactions. It established important principles regarding the voidability of contracts and transfers involving breaches of fiduciary duty.
Patrick was known as a charming man. He belonged to the Imperial Service and Australian Jockey clubs, a member of the Sydney Cricket Ground Trust and the Marylebone Cricket Club, London. He was said to be a ‘dedicated atheist’. Survived by his third wife and his son, he died on 12 November 1988 at Darling Point.
The AJHS acknowledges the following references in the preparation of this story:
Australian Dictionary of Biography – Kay Sweeney; National Library of Australia – Trove; Law in Plain English
The Australian Jewish Historical Society is the keeper of archives from the arrival of the First Fleet in 1788 right up to today. Whether you are searching for an academic resource, an event, a picture or an article, AJHS can help you find that piece of historical material. The AJHS welcomes your contributions to the archives. If you are a descendant of someone of interest with a story to tell, or you have memorabilia that might be of significance for the archives, please make contact via www.ajhs.com.au or [email protected].
