Hall v. Allfree
Hall v. Allfree
Opinion of the Court
— This action was originally instituted by appellee James B. Allfree against the Allfree Engine Company, a corporation, to recover the sum of $23,320.49, loaned to the Allfree Engine Company at different times, and which, it was alleged, said Allfree Engine Company had promised to pay on demand.
A second paragraph of complaint was filed, in which a receiver for the Allfree Engine Company was asked, not on the ground of insolvency of the corporation, but on account of a dispute among its stockholders as to .the payment of certain claims, and on the allegation of imminent danger of insolvency, growing out of such internal dissensions.' A receiver was appointed.
Appellant, on his own application, was made a party defendant to the action, and leave was granted to file a cross-complaint against appellee Allfree. Thereupon, for himself and others who might choose to come in thereunder, appellant filed his cross-complaint, asking that said Allfree be adjudged a trustee under a certain agreement, dated
The contract sued on and made a part of the cross-complaint is as follows:
“This agreement entered into the 25th day of May, 1901, by and between James B. Allfree of Indianapolis, Indiana; Wm. C. Hall, of Indianapolis, Indiana, Bobert Shriver, of Cumberland, Maryland; James H. Woods, of Los Angeles, California; Edgar B. Hetzel, of Indianapolis, Indiana, and James Clark, of Cumberland, Maryland, witnesseth: That, whereas, James B. All-free has obtained certain letters patent of the United States, bearing number and date, as follows, to wit: No. 613,184 for Engine Yalve Gear, dated Oct. 25, 1898. [Here follow various patents with number and date.] All of which said letters patent are now owned by said James B. Allfree. And whereas, it is intended hereby, and agreed that all parties hereto shall participate in any and all profits and proceeds arising from the sale, license or use of said letters patent, or machines containing said patented improvements, in the proportions named below; Now, in consideration of the premises and of one dollar by each to the other paid, the said parties hereto mutually agree that the said patent shall be managed, licensed, sold and operated by the' said James B. Allfree, for the benefit and behoof of all the parties hereto and the proceeds and profits accruing therefrom received, or to be received by said Allfree shall be and become the property of all the parties hereto, in the proportion as follows, to wit: James B All-free, thirty-three and one half (33-£) per cent. Bobert Shriver, thirty-three and one half (33J) per cent. William C. Hall, twenty (20) per eent. James H. Woods, ten (10) per cent. Edgar B. Hetzel, two (2) per cent. James Clark, one (1) per cent. To be distributed from time to time to said parties by said Allfree in said proportions. And the said James H. Woods especially*390 agrees that this agreement is to operate in his favor only-on condition that he shall take $10,000 of the common stock of the Allfree Engine Company as provided by a certain agreement between said Woods and said Company, of even date herewith; and in case he shall decline to take the common stock of said company as herein provided, then he shall not participate in this agreement, and the share of ten (10) per cent provided for in his name shall not accrue to him, but shall be and become the property of said James B. Allfree and said Robert Shriver in equal shares of five (5) per cent each. And the said James B. Allfree agrees that he will well and truly collect, receive and account for all such proceeds and profits, and the same coming into his hands divide and pay over to the several parties hereto in the proprotions set forth. And to this binds himself, his heirs, and assigns. In witness whereof, ’ ’ etc.
The cross-complaint was answered by plaintiff Allfree in three paragraphs. In the second paragraph it is averred that the contract sued on was given without consideration. This was the question submitted and determined in the court below. The court found for plaintiff for the full amount of his claim, and against the cross-complainant on his cross-complaint, and rendered judgment accordingly.
Other propositions urged by appellant pertaining to the question of consideration, as shown by the evidence, cannot be considered without presuming to weigh the evidence
The judgment is affirmed.
Note. — Reported in 99 N. E. 813. See, also, under (1) 3 Cyc. 348; (2) 9 Cyc. 3GG; (3) 9 Cyc. 327. As to the inadequacy of the consideration for a contract, see 56 Am. Rep. 332; 81 Am. St. 605. As to the sufficiency of consideration to support promise, see 39 Am. St. 743.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.