J. G. Hutchinson & Co. v. Morris Bros.
J. G. Hutchinson & Co. v. Morris Bros.
Opinion of the Court
Plaintiffs are wholesale merchants and sold to defendants, a firm of retail merchants, a bill of groceries. Afterwards, the plaintiffs brought an action on the account and sued out an attachment in aid. Interpleader filed his interplea, making claim of title to the property. A trial of the interplea resulted in his favor.
It appears that the defendants were a partnership composed of Charles and Marion Morris. That the latter was arrested and confined in jail in Kansas on a criminal charge and that interpleader deposited with the proper authority in Kansas $500 as bail for his appearance to answer the
Plaintiffs claim that interpleader should not have prevailed in the trial court for the reason that the mortgage was withheld from record in fraud of creditors and to protect the credit of the partnership and relies on the cases of Williams v. Kirk, 68 Mo. App. 457; Dry Goods Co. v. Brown, 73 Mo. App. 245. On the other hand, interpleader disavows the mortgage and claims that recognizing it was invalid, he bought the stock outright for a good faith debt (the bail money) prior to the attachment. There was ample evidence to sustain the verdict in this respect and we therefore would not disturb' it but for error committed in instructions and on the rulings on evidence.
But Charles Morris had no authority to sell the partnership property without the consent of Marion. One partner alone can not sell the partnership property in payment of the other partner’s debt, yet he may do so with the consent of all the partners. Goddard-Peck Grocery Co. v. McCune, 122 Mo. 426; McDonald & Co. v. Cash & Hainds, 57 Mo. App. 536. Now the only evidence that Marion consented to Oharles selling the partnership property consisted of what witnesses for interpleader (including himself) stated that Oharles told them that Marion had told him. None of these witnesses pretended that Marion himself had said he authorized the sale. This was mere hearsay and the evidence should have been excluded and instructions on that head for interpleader should have been refused.
But it is said that though Marion did not consent, yet since he is not objecting, attaching creditors have no right in the matter. It is true that the right of a creditor to subject partnership property to the payment of debts is a derivative
That the debt in this case was that of the non-consenting partner does not affect the matter.
In view of the fact that the. case is to be retried we will suggest that if it be shown that interpleader made a cash deposit bail for Marion, as seems to be allowed by the law of Kansas, which was accepted by him by going at liberty thereunder and which he afterwards forfeited causing the loss of the amount to interpleader, the latter has a valid debt against him and plaintiffs’ instruction number six should not have been given. Such case is not like that of a contract of indemnity executed to one to secure him against loss if he will execute bail for the appearance of one accused of crime. Unless it could be shown that it was understood' at the time the deposit was made that the accused would avoid trial by non-appearance and forfeiture.
The judgment is reversed and the cause remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.