Wilder v. Morris
Wilder v. Morris
Opinion of the Court
delivered the opinion oe the court.
It is perfectly manifest from the petition that the main purpose of this suit, in its inception, was to compel a compliance on the part of appellant with the alleged contract to take the gold and cotton ventures of the firm to his individual account, and out of his own funds respond to the losses sustained thereby.
It is true that in a short paragraph near the close of his very long petition, devoted to stating a cause of action against appellant for a breach of contract in failing to take to his own account the speculations in gold and cotton and paying the losses incident thereto, appellee does allege that on the dissolution of the firm appellant assumed to be the successor of the house; took possession of all the books, papers, and assets of the firm; retained the office, fixtures, and furniture; had proceeded to collect the debts due the firm to a large amount, exceeding-dollars, for which he had not accounted; and, though possessed of the assets, he had failed to pay debts owing by the firm for stationery and other things necessary for carrying on the business; and concludes with a prayer that appellant be required to produce before the master the books of the firm, to set forth what money he had received belonging to it, and how the same had been appropriated; and that he be compelled to settle the partnership accounts, and to pay io him whatever balance should be found due him on such settlement.
In answer to these charges appellant admitted that after the dissolution of the partnership — which occurred, as De Selding proves,’ about the 1st of June, 1865 — he went to New
In the opinion delivered by the chancellor, he correctly states that upon a dissolution of a partnership one partner is no more bound than another to give his time and labor to winding up the affairs of the firm, unless he has by contract or otherwise assumed the exclusive duty of doing so; and concludes, from a statement made in the pleadings, that appellant by his own showing voluntarily undertook to close the affairs of the firm, and held him to the strictest accountability; citing the case of Prentis, &c. v. Buxton’s adm’r, 3 B. Mon. 35, as an authority therefor.
The substance of the pleadings of both parties has been stated in reference to the question now involved; and while we regard the construction put on the language of the answer by the court very latitudinous and scarcely authorized, yet, considered in connection with Be Selding’s evidence, a witness introduced by appellee, it does seem that instead of appellant having voluntarily assumed the management of the affairs of
Fronrthis statement it appears that appellee was up to the 1st of May the sole manager of the business, and when from failing health he was unable to attend to it, he selected the agent for the firm. Appellant was satisfied with his selection, and Dumesnil remained until they dissolved and his services were no longer needed. Appellant then did what could be done in New York toward winding up the affairs of this
The facts authorize the conclusion that appellant was induced to go to New York to take charge of the business after appellee had given it up and returned to Kentucky, and that he had the books, papers, etc., sent to Louisville after the firm was dissolved; and there was no reason whatever for leaving them in New York.
If, as is said in the opinion of the chancellor, and which is correctly said, it is as much the business of one partner as another to give his time and attention to winding up the affairs of a firm, unless the one has by contract or otherwise assumed the exclusive duty of doing so, it would be necessary before one partner can be made responsible for all outstanding debts that a direct allegation should be made of a contract by him to that effect, or the charge should be made accompanied by a statement of facts sufficient to constitute such an assumption distinctly, so as to give the party charged an opportunity to traverse the allegations.
In Prentis & Johnson v. Buxton’s adm’r, before referred to, it appears in the opinion that the appellants undertook, by the terms of their contract, to collect the debts due the late firm of Prentis & Buxton, and to keep a faithful account of their collections; and apply, first, so much of such collections
It can not be sufficient to charge one partner with the full amount of uncollected debts due the firm at its dissolution that accident has placed the books, papers, and evidence of debts in his possession, and he has neglected to use reasonable diligence in collecting the debts of the partnership, while the other partner remains perfectly passive and indifferent to his own interests. We fail to see a sufficient reason for making appellant responsible personally to appellee for one half of the uncollected debts due the late firm.
Wherefore the judgment is reversed, and the cause is remanded with directions to refer the case to the master, and to charge appellant with the debts of the firm collected by him; with any money and effects of the firm which may have come to his hands; ascertain and report whether appellee was at any time refused access to the books of the firm by appellant, and whether any debts due the firm were lost by the negligence or mismanagement of appellant, and if any were so lost, specify the persons owing such, and the amount thereof; credit him with any debts owing by the firm which he may have paid;
Case-law data current through December 31, 2025. Source: CourtListener bulk data.