Hanks v. Wilcox
Hanks v. Wilcox
Opinion of the Court
delivered the judgment of the Court as follows:
An order of reference was granted by the Chancellor, in this cause, directing J. E. Barnard, Esq., one of the Masters’, in Chancery, to take an account, in order to ascertain and report what amount, if any, is due to, or owing by, each of the parties composing the late firm of Richard Coady & Co., of Honolulu; and also to ascertain what amount, if any, is due to the complainant Hanks, in the nature of a quantum, meruit, for extra services Said to have been performed by him in closing up the business of the firm.
The Master reported in favor of the complainant’s claim for compensation, as for extra services, and placed to his credit under that head, in making up the accounts, the sum of $4,988 51 (less $1,500 previously credited to Mr. Hanks on the books,) being a commission of five per cent, upon $98,770 23, the amount of business liquidated by Mr. Hanks, in-winding up the
It is contended by counsel for Mr. Wilcox, that under the well understood principles which are everywhere held applicable in relation to the rights and duties of surviving partners, upon a dissolution of partnership by death, Mr. Hanks is not entitled to any remuneration whatever, for assistance rendered by him in winding up the affairs of the late firm, of which he was a member. We think there can be no doubt of the general soundness of this doctrine. Counsel for the complainant admits, that by the ordinary rule of law a partner is not allowed to charge compensation for any services rendered by him, in prosecution of the partnership business, while the partnership continues in active existence'; and we think the same rule generally holds good in relation to services performed as well after a dissolution as before. It was the duty as well as the right, of the surviving partners of the late firm of Richard Coady & Co. to wind up the partnership business after the death of Mr. Coady, to close all pending operations, to settle with the creditors and debtors of the firm, and to account with the lawful' representatives of their deceased partner for his share of the capital and profits. For the services rendered by the surviving partners, in so winding up the affairs of the firm, neither of them is entitled to any remuneration, unless there was an express stipulation to that effect, or unless the services performed by .him were of such a nature, or were performed under .such circumstances, as will necessarily raise an implied understanding that he should be paid. (See Collyer on Park, p. 192, sec. 199, and note 3; Story on Part., sec. 381, and note ; Kent’s Com., vol. 3, p. 72, note a; U. S. Eq. Digest, vol. 2, p. 405, secs. 389, 390, 393 ; p. 406, secs. 400, 405.)
There is no evidence in this case of an express agreement on the part of either of the respondents to pay the complainant for any services performed by him after the dissolution ; and
The question is then, did Mr. Hanks render extraordinary assistance in the winding up of the partnership business, and as there was no express agreement to pay him for extra services, did he perform services of such a nature, or under such circumstances, as create an implied agreement that he should be paid therfor ? It appears in evidence that Mr. Coady, the leading member of the firm, died suddenly at sea, -on his way to San Francisco, on the 18th of June, 1858, within six months after the commencement of the partnership, at which time the other partner,' Mr. Wilcox, was also absent from Honolulu on a visit to the United States. Mr. Hanks continued to be the only member of the firm here until the return of Mr. Wilcox in the middle of September following. From’ the final dissolution of the partnership on the 1st of January, 1859, up to August 80th of. the same year, Mr. Hanks continued to devote his time to the winding up of the business, Mr. Wilcox having again left for the United States in the month of April. ( On the 30th of August, 1859, Mr. Hanks formed a new connection in business, but still continued to bestow such attention as was necessary to closing up the affairs of R. Coady & Co. till the month of May, 1860. The business carried on by Richard Coady previous to the formation of the partnership, became merged in that of the firm, increasing the labor thrown upon Mr. Hanks, in closing accounts and effecting settlements, and it probably required as much time and labor to wind up the partnership at the end of one year, as if it had lasted four years, as originally contemplated. It is said that in becoming a member of the firm under the stipulation already referred to Mr. Hanks must have understood what was expected of him,
The last question to be determined is, what amount of compensation shall be allowed ? It is objected by counsel for the contesting respondent, that Mr. Hanks’ remuneration should not be measured by a commission. We think the objection is a good one. The same mode of payment which might have been considered proper, in the case of a stranger acting as receiver, should not be adopted in paying Mr. Hanks, a member of the firm. It was his duty to assist in closing up the business of his firm, and the special reward that is to be allowed him should not exceed a bare remuneration for his extra labor, it being in the nature of an allowance for extra expenses incurred. It has been argued with much force, that when Mr. Hanks charged the concern with fifteen hundred dollars, as paid to himself, on the 14th of November, 1859, for services rendered after'the dissolution, he himself measured the value of those services. From the wording of the entry, as it appears upon the books, we are inclined to think that Mr. Hanks, at that time, did look upon the sum so charged, as all that he should receive. But apart from this consideration, the Court feels that in allowing him that amount, it does what is just and equitable towards all parties interested.
The exception to the master’s report is therefore sustained, to that extent, and the sum of $1,500 only will be credited to the complainant, under the head of extra services. «
Reference
- Full Case Name
- F. L. Hanks v. P. S. Wilcox and Charlotte Coady
- Status
- Published