Bank of Commerce v. Ada County Abstract Co.
Bank of Commerce v. Ada County Abstract Co.
Opinion of the Court
— This is an action on a promissory note dated March 14, 1903, for $250, signed as follows: “Ada
Upon the issues thus made the cause was tried by the court with a jury and a verdict and judgment was rendered and entered for the plaintiff. This appeal is from the judgment, and the assignments of error involve only questions of law. In limine, the question as to what papers the record on appeal should contain is presented. The transcript contains the
It was held in Caldwell v. Parks, 47 Cal. 640, that a bill of exceptions based upon alleged errors of law occurring at the trial settled within thirty days after judgment was rendered, became a part of the record on appeal from the judgment and might be used for determining whether errors of law had been made in the trial of the case. So under the provisions of said section 4818, the record on appeal, when the appeal is from a final judgment, must contain the judgment-roll and any bill of exceptions or statement in the case, upon which the appellant relies. In our view of this case it is not necessary for us to specifically pass upon each of the errors assigned. It is conceded that the appellant, the Ada County Abstract Company, is a partnership, and that at the time the promissory note sued on herein was executed, was composed of three persons, to wit, Prinn, Wickersham and Ellsworth, and it appears without contradiction and is conceded by counsel for the respondent that before the commencement of this action said three partners had sold their interest in said business to E. E. Wright and the Capital State Bank. After purchasing said business said Wright and the Capital State Bank continued the same under the former name, the Ada County Abstract Company. It appears from the record that said Wright purchased the interests of Wickersham and Ellsworth, and thereafter made a contract for the pur
In 1 Lindley on Partnership, fourth edition, 392, it is stated: “In order to render an incoming partner liable to the creditors of the old firm, there must be some agreement, express or tacit, to that effect, entered into between him and the creditors and founded on some sufficient consideration. If there be such agreement, the incoming partner will be bound by it, but his liabilities in respect of the old debts will attach by virtue of the new agreement and not by reason of his having become a partner. And the agreement to be proved must be an agreement with the creditor; and of such an agreement, an arrangement between the partners is of itself no evidence.” In order to hold an incoming partner for outstanding liabilities of the firm of which he becomes a mem
The partnership known as the Ada County Abstract Company which was served in this cas.e with summons and appeared at the trial was not composed of either of the members of the firm of the Ada County Abstract Company that executed the promissory note sued on herein. The Ada County Abstract Company, which was made defendant in this case, was not the Ada County Abstract Company served with the summons in the case. It appeared at the trial that the latter was the successor of the former, and it being only a partnership, cannot be held for the indebtedness of the old partnership, unless it be first shown that .they assumed and agreed to pay that indebtedness.
It is contended that the money for which the promissory note sued on was given was invested in the office furniture, etc., of the Ada County Abstract Company, composed of Prinn, Wickersham and Ellsworth, and that as they sold said furniture and property to the new partnership, the respondent ought to be permitted to pursue that property and hold it for the debt. We know of no law that would permit them to do that, unless they had such a lien thereon as is recognized by the laws of this state, and it is not claimed in this case that they had such a lien.
The judgment must be reversed, with directions to dismiss the action as to the Ada County Abstract Company, composed of Wright and the Capital State Bank. Costs are awarded to the appellant.
Reference
- Full Case Name
- BANK OF COMMERCE v. ADA COUNTY ABSTRACT COMPANY
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- 1 case
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- Published
- Syllabus
- Transcript on Appeal — What to Contain — Partnerships—Promissory Note — Sale of Partner’s Interest in Partnership — Assumption of Partnership Debts — Liabilities of Incoming Partner. 1. Under tbe provisions of section 4818 of the Bevised Statutes, where an appeal is from final judgment only, the appellant must furnish the court with a copy of the notice of appeal, the judgment-roll and of any bill of exceptions or statement in the case upon which he relies. 2. Such bill of exceptions or statement may be used on appeal for determining whether errors of law had been made in the trial of the case. S. Where a partnership was formed under the name of the Ada County Abstract Company, and was composed of Prinn, Wicker-sham and Ellsworth as partners, who all sell and transfer their interests in such partnership to Wright and the Capital State Bank, the incoming partners are not liable for any of the debts of the old firm, unless they have assumed or agreed to pay such indebtedness. 4. One who loans money to a partnership, which is thereafter invested in offiee furniture and other property by such partnership, which partnership thereafter sells and transfers said property to others, the one loaning the money cannot pursue the property for such debt, unless he has retained some lien thereon recognized by the laws of the state. (Syllabus by the court.)