Smith v. Lanier
Smith v. Lanier
Opinion of the Court
An assignment was made by W. C. & L. Lanier, a firm of bankers, for the benefit of creditors. In the list of creditors attached to the assignment the name of Mrs. Annie T. Smith did not appear. She, as the guardian of certain named wards, filed an equitable petition against the Laniers and others, praying that the assignment be set.aside as illegal, that a receiver be appointed to take charge of the partnership assets, and that she have judgment for a large sum claimed to be due her as guardian. In their answer to her petition, the defendants denied that, at the time the assignment in question was made, the firm of W. C. & L. Lanier was indebted to her, either individually or in her capacity as guardian, in any amount whatsoever. So it will be seen that her right to any of the relief prayed for depended upon her ability to show that she was, as matter of fact, really a creditor of
We think the trial judge was clearly right in refusing to admit this book in evidence. In a controversy between Mrs. Smith and L. Lanier, it. would unquestionably have been admissible as evidence in the nature of admissions made by him against his interest; but, as against the partnership, the hook could not serve this or any other purpose, for the simple reason that, in keeping the book, he was acting as her agent, and not as the agent of the firm of which he was a member. Had the agent appointed by her to manage the affairs of the plantation been a person entirely unconnected with this firm, it would be perfectly clear that no entries of his in a private book wherein he endeavored to keep a correct account of his transactions with her could, in any view.of the matter, possibly affect the partnership. In principle, it makes no difference that her agent happened to be a member of the firm with which he dealt in her behalf. His acts with reference to carrying on the business of the plantation were the acts of “ L. Lanier, Agent,” and not those of L. Lanier, a member of the firm of W. O. & L. Lanier. Nor does it matter that, in the latter capacity, he made out and rendered a statement to Mrs. Smith of her account with his firm. For aught that appears, this statement was correct in every detail, and a strict account was made of every cent which actually went into the partnership’s hands. Whethér L. Lanier, as the plaintiff’s agent, received moneys belonging to her wards for which he has never accounted, is an entirely different matter. The book kept by him showing his dealings with her doubtless might throw more or less light upon this question ; but it could not possibly be regarded as evidence tending to show that his firm had not accounted to Mrs. Smith for every dollar which he, acting as her agent, had committed to its keeping. The rule which holds a partnership liable for the acts of any member thereof while assuming to act within the apparent scope of the partnership business certainly is broad enough to protect the rights of third persons dealing with the partnership. Indeed, a strict application of this rule is often attended with manifest hardship. It would be monstrous to
In order to sustain her allegation that she was a creditor of the firm of W. C. & L. Lanier; it was incumbent upon the plaintiff to show affirmatively by competent evidence that assets belonging to the estate of her wards and unaccounted for actually went into the hands of that firm; for otherwise, it is obvious that she would have no concern in the question whether the assignment to creditors was, or was not, valid and binding. As, upon the interlocutory hearing, she signally failed in her attempt so to do, the trial court properly declined to grant the extraordinary relief prayed for in her petition.
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.