Gulf & S. I. R. v. Hunter
Gulf & S. I. R. v. Hunter
Opinion of the Court
Plaintiff seeks a judgment against defendant as the proprietor o£"S. J. Russell & Co., upon the ground that he (defendant) had assumed all of the liabilities of Russell & Co. The action is upon several promissory notes of J. N. George & Sons, which bear the indorsement of “S. J. Russell & Go. by S. J. Russell.”
Beginning about the year 1912, J. Russell was engaged in the business of wholesale grocer and cotton factor in the City of Shreveport, and so continued until January 1, 1919. About the 1st of December, 1918. at the instance of his father, S. S. Hunter, defendant entered the establishment of Russell, with the view of possibly forming a partnership with the latter. Russell had become involved 'financially and the Hunters, father and son, were indorsers on his paper at the banks for several thousands of dollars, and it was with the view of meeting this situation and protecting their indorsements that young Hunter went to the rescue of ¡Russell, his uncle (Mrs. Russell being a sister of S. S. Hunter). After checking up the affairs of the business, it was decided that defendant, W. J. Hunter, should take it over, assume all liabilities, and that Russell should retire, which was accordingly done. This took place, as before stated,- January 1, 1919, and the name of the business was changed to “S. J. Russell & Co.,” with defendant as proprietor.
Thereafter S. J. Russell went to the state of Mississippi, in the capacity of superintendent or some other relation to a gravel pit business operated by J. N. George & Sons, makers of the notes sued on, and in which gravel business S. S. Hunter, father of de
Plaintiff made no investigation to ascertain if Russell’s representations were correct. Defendant had no connection with the gravel business in Mississippi, and knew nothing about the indorsements upon the notes until shortly before this suit was filed, January 9, 1922. He continued the business in the name of S. J. Russell & Oo. until the end of December, 1921. when it was changed, and his own name substituted.
Plaintiff seeks to hold defendant liable because he used the name of S. J. Russell in the business as a part of “S. J. Russell & Co.,” and did not inform the general public of Russell’s retirement. However, it is shown that, after defendant took hold, he paid all debts, as agreed, and that no credit purchases were made; bills were discounted, the indebtedness of the business, if any was due to the banks, and notice of the change was given those institutions, insurance companies, etc., but ‘none by publication or otherwise to the general public.
The judgment below was for defendant, and, for the reasons stated, it is affirmed, with costs.
Reference
- Full Case Name
- GULF & S. I. R. CO. v. HUNTER
- Status
- Published
- Syllabus
- (Syllabus by Editorial Staff.) 1. Partnership Where one holds another out as his partner, it is only where the acts or things done have some connection with the business of the alleged firm that liability by way of estoppel arises. 2. Partnership Where defendant took over the business of his uncle, assuming all liabilities, but retaining the name of the uncle as part of the firm name, and the uncle entered the employment of another and indorsed paper for his employer, representing that he was the sole proprietor of the business conducted by defendant, held that, as the transaction was not connected with the business conducted by defendant, he was not liable by way of estoppel; it being plaintiff’s duty to investigate before accepting the statements of the uncle.