Fitch v. Harrington
Fitch v. Harrington
Opinion of the Court
We are all of opinion that the plaintiffs are entitled to a new trial, for the reason that the instruction respecting a subpartnership between Leonard Harrington and Samuel P. Harrington, given, as it was, without any explanation, may have misled the jury. That part of the instructions was given on the authority of Collyer on Partnership, (3d ed.) § 194, which was cited by the defendants’ counsel at so late a stage of thi trial, that the court had no opportunity to examine the position there laid down, which is thus: “ Although the delectus persona, which is inherent in the nature of pártnership, precludes the introduction of a stranger against the will of any of the copartners, yet no partner is precluded from entering into a subpartnership with a stranger; nom socii met socius, meus socius non est. In such case, the stranger may share the profits of the particular partner with whom he contracts, and, not being engaged in the general partnership, will of course not be liable for their debts.”
The only decided cases which Mr. Collyer cites, in support of this position, are that of Sir Charles Raymond, referred to by Lord Eldon, in Ex parte Barrow, 2 Rose, 255, and that of Brown v. De Tastet, Jac. 284. In the case in 2 Rose, Lord
But Mr. Collyer also cites 2 Bell Com. 636, where it is said : “ There may be a subcontract, by which a stranger may be admitted to divide with any of the partners his share of the profits. The other partners are not bound to take notice of this subcontract ; nor is there any responsibility attached to it, by which the stranger, as sharing in the profit of the concern, becomes liable for the debts of the partnership.” Erskine’s Institutes, and the case of Fairholm v. Majoribanks, decided in Scotland in 1725, are cited in support of this position. In looking at 3 Ersk. Inst. (ed. of 1828,) §§ 21, 22, we find that nothing is there said concerning the liability of such stranger for the debts of the partnership. Mr. Erskine says, “if any of the partners shall assume a third person into partnership with him, such assumed person becomes partner, not to the company, but to the assumer.” We have not seen the report of Fairholm v. Majoribanks. But Mr. Stark cites that case and Erskine’s Institutes, in support of the following passage in his work on partnership
Now what is our law and the law of England on this subject ? We understand it to be thus: An agreement between one copartner and a third person, that he shall participate in the profits of the firm, as profits, renders him liable, as a partner, to the creditors of the firm, although, as between himself and the members of the firm, he is not their copartner; but if such third person, by his agreement with one member of the firm, is to receive compensation for his labor, services, &c. in proportion to the profits of the business of the firm, without having any specific lien on the profits, to the exclusion of other creditors, he is not liable for the debts of the firm. Denny v. Cabot, 6 Met. 90-94. Bradley v. White, 10 Met. 305. Holmes v. Old Colony Railroad, 5 Gray, 58. Burckle v. Echart, 3 Comst. 132. 3 Kent Com. (6th ed.) 33 & seq. Parsons Merc. Law, 168, & note.
The other instructions given to the jury seem to us to have been unexceptionable. New trial granted.
Reference
- Full Case Name
- Dana H. Fitch & others v. Samuel P. Harrington & others
- Status
- Published