Reid v. Freed
Reid v. Freed
Opinion of the Court
With respect to the discharge of the receiver, we are of the opinion that the conrt erred in discharging the receiver. The testimony rather makes the impression upon ns, taken as a whole, looking to the entire correspondence, that Welch was not inveigling Freed into the contract set out in the record, but that the contract was sought by Freed himself. It would rather seem that Freed was depreciating Peterson, and trying to get Welch to take him in Peterson’s place, and this was the result accomplished. It is further clear, from the evidence, that Freed put no money into the venture, and that, after the lapse of about five months only, Welch had furnished a gross amount of over eight thousand dollars, subject to certain credits which would reduce the amount to something like five thousand dollars.
The grounds on which the receiver was applied for are many. For example: That timber had been purchased by Freed without the consent of the appellants; that Freed made continuous demands for money, which finally aggregated, as stated, over eight thousand dollars; that the expenses were largely in excess of the gross income from the mill; that moneys furnished had been improperly used by Freed; that the store operated by Freed had been operated without the con
Turning, now, to the matter of accounting: We have rarely seen the report of any master involved in as much
We are clear that this partnership should stand dissolved, and that far the action of the chancellor was correct. But he should have retained the receiver and referred the accounting again for a proper statement and an intelligible report by the master.
Reversed and remanded.
Per Curiam. The above opinion is adopted as the opinion of the court, and for the reasons therein set out the decree setting aside the receiver is reversed, and the receiver is retained for the further administration of the matters involved under the direction of the court; and the decree is further reversed entirely as to the whole matter of accounting, and the chancellor directed to refer all the matters 'of accounting to a competent master, to restate the account and report thereon. The decree awarding damages in the sum of twenty-two hundred and sixty-seven dollars and sixty-seven cents is reversed and set aside, since this matter of damages, attorney’s fees, etc., must wait a proper accounting.
Reference
- Full Case Name
- W. W. Reid v. C. E. Freed
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- 1. Partnership. Dissolution. Receiver. Accounting. Where two partners, owning timber land and a sawmill, formed a partnership with a third party, who had no capital, but who was to operate the mill, share in the net profits, and account with the owners, and the third partner purchased timber without the consent of the others, operated a store without their consent and at a loss, caused the expenses to be largely in excess of the gross income from the mill, improperly used money furnished by his partners, failed to furnish proper accounts or pay rolls as a basis of settlement with the employees, and refused to deliver up the possession of the mill to his partners, and the two original partners filed a bill in chancery against the third partner praying the appointment of a receiver, the dissolution of the partnership and an accounting between the parties, held, that the partnership should have been dissolved and an accounting had and that a receiver was necessary to administer the business and settle the rights of the parties under the orders of the court. 2. Same. Where in such ease the report of the master appointed to take and state an account between the parties is obscure, confused, and so unintelligible that the court cannot pass upon it satisfactorily, the matter of accounting will be referred again for a proper report.