Kirkendall, Jones & Co. v. Shorey & Co.
Kirkendall, Jones & Co. v. Shorey & Co.
Opinion of the Court
" Kirkendall, Jones & Co. held an account not yet due, against the firm of Shorey & Co., upon which they commenced proceedings by attachment in the county court of Antelope county; the ground for attachment set out in the petition being, “that they have sold, conveyed, and disposed of their property with the fraudulent intent to cheat and defraud their creditors, and that defendants were about to convey and dispose of their property with intent to cheat and defraud their creditors.” An order in attachment was issued, and property of the defendants therein taken in attachment. The said defendants appeared and presented and filed a motion to discharge the said attachment for the following reasons:
“ First — The facts stated in the affidavit are not sufficient to justify the issuing of the same.
“ Second — Because the statement of facts in .said affidavit is untrue.”
The said motion was heard by the court upon affidavits in support and in resistance thereof. And thereupon the court overruled the said motion, to which order the defendants excepted, and preserved the said affidavits by a bill of exceptions. The hearing was had on the 20th and 21st days of February, 1888, and the bill of exceptions settled on the 8th day of March, following. On the 13th day of April, 1888, the defendants filed in the district court of Antelope county a petition in error in said cause, in which they set out and assigned the following errors:
“First — The court erred in overruling plaintiffs’ [in error] motion to discharge the attachment.
“Second — The court erred in permitting, over plaintiffs’ objection, A. Y. Finch to answer the question No. 9 of his direct examination.
*633 “Third — The court erred in permitting witness Finch, over plaintiffs’ objection, to answer the 19th question on his direct examination.
“ Fourth — The court erred in overruling plaintiffs’ objection to the 20th direct question, and in permitting said witness to answer the same over plaintiffs’ objection.
“ Fifth — The court erred in overruling plaintiffs’ objection to the 24th question put to said witness, and in permitting his answer thereto over objection of plaintiffs.
“Sixth — The court erred in overruling plaintiffs’ objection to question of witness H. A. Shorey, and in permitting his answer over the plaintiffs’ objection.
“ Seventh — The court erred in overruling the objection to questions Nos. 5, 6, 7, and 8 of witness H. A. Shorey, and in permitting answers thereto over plaintiffs’ objection. Also in overruling plaintiffs’ objections to questions 41,42,43,44, 45,46, 48, 50, 51, and 52, to said witness, and in permitting his answer thereto over the plaintiffs’ objection. Also in permitting, over plaintiffs’ objections. Exhibits 1 and 2.”
The cause was heard upon error in the district court, which reversed the said order of the county court, and dismissed the said attachment.
Afterwards on the 22d day of-, 1888, Kirkendall, Jones & Co. presented their motion in said court for a rehearing in said cause, and as the ground thereof alleging that the cause was fully submitted to said court on the 9th day of May, 1888, on the petition in error filed on the 13th day of April, 1888, D. A. Holmes appearing as attorney for the defendants in error; that on the following day, and after the said Holmes had left the county of Antelope, and before said cause was decided, and without notice to the said Holmes, plaintiffs in error filed an amended transcript of the proceedings in the county court, and such transcript now appears of record to be the trans-script ujDon which the final judgment of the court was
The errors assigned are:
1. The district court erred in reversing the order of the county court.
2. In overruling plaintiffs’ motion for a rehearing.
The defendants’ motion to discharge the attachment was heard and tried by the county court upon affidavits and oral testimony taken before the court; also, upon a certificate of partnership of Ella M. Shorey and Mary P. Shorey, dated November 10, 1887, of record in the county clerk’s office November 12 following, which was offered by defendants, and by which it appears that on September 1, 1887, a copartnership was formed, under the name of Shorey & Co., to continue indefinitely from that date; that the nature of their business was that of a retail store for the
They presented the affidavit of A. V. Finch, that he had been in the employ of Shorey & Co., of Neligh, as salesman in charge of their store since they commenced business ; that he has known all the sales made and business transacted from said store since it was started; that the only sales made were those in the usual course of retail trade, and the proceeds, as fast as collected, weredeposited in bank for the payment of bills as they fell due. •
Also the affidavit of Ella May Shorey, that she is a member of the firm and one of the defendants; that they organized and commenced business as a firm on September 1, 1887, composed of Mary P. Shorey and Ella May Shorey; that it has never had any other members, and no person, company, or body has now, or at any time since the partnership has had, any authority to dispose of any part of the property or goods of the firm, except the clerks employed in the store at Neligh, nor have they now, or at any time have they had, any authority to sell, dispose of, remove, or convey any property of defendants, except that of the goods in the store at Neligh in the usual course of retail trade; that defendants have not at any time sold any part of the property, goods, and merchandise, or otherwise disposed of the whole or any part of their property with the fraudulent intent to cheat or defraud their creditors, or to hinder or delay them in the collection of their debts; that they are not now, nor have been at any time since the formation of their partnership, about to sell, convey, or otherwise dispose of any of their property with any intent to either fraudulently or otherwise defraud their creditors, or to hinder or delay them in the collection of their debts; that the defendants are not now, and have not been at any
Also the affidavit of J. L. Shorey, that he is a member of the firm of J. L. Shorey & Co., of Norfolk, the son of Mary P. Shorey, and the brother of Ella May Shorey, who constitute the firm of Shorey & Co., of Neligh; that neither said firm of Shorey & Co., nor any member of it, has, or has ever had, any interest in the firm of J. L. Shorey & Co., and have never been connected with it in any manner; that these two firms are and always have been absolutely distinct from each other, neither firm ever having had any interest in common or participated in the business of each other; that prior to September 1, 1887, there was a negotiation between the parties to said firms for a partnership embracing the business of both, which never reached an agreement, but prior to that date was wholly abandoned; that there is not and never has been at Norfolk any firm of Shorey & Co., the firm there having always been that of J. L. Shorey & Co., and that affiant
Also the affidavit of Mary P. Shorey, stating substantially the same facts as that of Ella May Shorey.
The plaintiffs presented an itemized account, dated Omaha, September 8, 1887, of $132.70, for boots and shoes sold to the firm of Shorey & Co. at Norfolk, and of like sales to Shorey & Co. at Neligh, of $424.95; also one of September 17, 1887, to same firm of $63; and to same firm, of September 23,1887, of $146.60; and to the same firm at Norfolk, October 5, 1887, of $29.90; and one net, of $59; and one of October 22, 1887, of $15. These bills are sworn to by Charles A. Coe, a member of the plaint- ■ iffs’ firm.
Also the affidavit of Freeman P. Kirkendall, that he is the senior member of the plaintiffs’ firm; that on the sale of the first bill of goods to Shorey & Co. he had a conversation in his store at Omaha with H. A. Shorey, who purchased the goods; that at the time Chas. A. Coe, the credit man of the firm, was absent, and affiant required the information of Mr. Shorey as to the standing of his firm, who stated that “his boys were in business in Norfolk and in Neligh; that they were good boys, and had some money, and that he himself was behind them and was worth $25,-000;” that no mention was made of any person other than his boys and himself as having any interest in the business ; that affiant’s firm did not at that time, nor since, sell any goods to Ella M. and Mary P. Shorey, who now claim to own the business at Neligh; nor have they at any time been requested to transfer their accounts to them; nor have the said Ella M. and Mary P. Shorey ever offered to assume the accounts, or intimated to affiant’s firm in any manner that they had any interest in the business, but, on the contrary, the communications of plaintiffs’ firm, both personally and by letter, have been with the said H. A. Shorey; that the letter submitted as Exhibit A
“Exhibit A.
“Neligh, Neb., Oct. 31, 1887.
“Messes. Kirk., Jones & Co.: Yours of the 28th is before me. I think there must be a mistake. My sons, which compose the firm of J. L. Shorey & Co., of Norfolk, have on hand more than a $1,000 worth of rubbers. They can buy goods, all they want and what they need, without my endorsement. Then my son at Central City said you refused him goods because you sold t,o Pearsons. And we have and are buying our rubbers for the Neligh store at Morses. I am not a member of either house, only stand ready to advise, and, if need be, to endorse, as it is my purpose for the boys to make a success. As you do not need a financial statement from me for the goods already delivered — which, doubtless, will be paid for in due time, and as I will tell the boys not to ask for further credit, I will not take the trouble to send the statement.
“ Resp’y, H. A. Shorey.
“Exhibit B.
“Neligh, Neb., Nov. 3,1887.
“Messrs. K., Jones & Co.: We were no little surprised at the announcement of drawing upon us on a 30 day bill; and I am sorry that the odd lot of boys’ boots is causing so much annoyance. The facts are these: I ordered a lot of boys’ calf at $1.75 a pair because they closed out a mixed lot of odd sizes. Then you called my attention to some wo’s boots at what you termed a low
“ As to J. L. S. & Go., I have nothing to say; they can do their own business. You can depend upon the bills being settled as soon, at least, as they are due.
“Resp’y, H. A. Shorey.
“ Exhibit C.
“Neligh, Neb., Nov. 10, 1887.
“Messrs. K., Jones & Co.: We return your draft unpaid, as we do not recognize the claim of a 30 day bill. Mr. Shorey, who ordered the goods for us, says not a word about their being nett, and as it was fully understood that our time was four months. We did not observe any terms on the bills, so, under these circumstances, we decline the draft. If, however, you very much want the money and will make the usual discount we will pay the bill.
“Resp’y, Shorey & Co.”
Also the affidavit of E. W. McCann, that he is a member of the firm of W. B. Jones & Co., manufacturers of fine shoes at No. 112 Washington street, Chicago; that he is acquainted with the Rev. H. A. Shorey, president of Gates college, in Nebraska; that on November 12( 1887, the said Shorey called at their place of business, in Chicago, and made representations, for the purchase of goods upon credit, and his own responsibility therefor, substantially the same as those alleged to have been made in the affidavits of Kirkendall and Coe, of the plaintiffs’ firm.
A. ~V. Finch, a witness examined by plaintiffs, testified that he resided at Neligh; was" a shoemaker by trade, and acquainted with the firm of Shorey & Co. for the past few months; had been, and was still, in their employ as clerk and cobbler, in their store, in Neligh, since September last.
Q. With whom had you a contract for your services?
A. Young Mr. Shorey came into my shop and talked to me about it, and we went to Mr. Shorey’s house and talked the matter over, as to wages, with young Mr. Shorey and his father. I went into their employ about a week afterward. Witness assisted young Miss Shorey and young Mr. Shorey, H. F. Shorey, and Ella Shorey, in the store. H. F. Shorey remained until November 1; after that, assisted Miss Ella Shorey. The old gentlemen was not about the store a great deal.
Q. From whom did you receive instructions as to your work, or the management of the business? (Defendants’ objections overruled and exception taken.)
A. Miss Shorey directed me as much or more than any
Q. About the time this suit was commenced who were you at work for ?
A. Shorey & Co.
Q. Who composed the firm at that time ?
A. I don’t know.
Q,. You never heard the firm was composed of Mary P. and Ella M. Shorey until after this suit was commenced, did you ?
A. I did not.
H. A. Shorey, sworn as a witness for the plaintiffs (over the objections of defendants, and exceptions taken), and testified that Mary P. and Ella M. Shorey composed the firm of. Shorey & Co. at Neligh, and that he was not acquainted with the firm of Shorey & Co. doing business at Norfolk.
Q. Do you know J. L. Shorey at Norfolk and the firm of which he is a member?
A. Yes, sir.
Q,. Who composes the firm ?
A. J. L. Shorey.
Q. Who is the company ? (Objected to by defendants.)
A. I don’t know.
Q. Were you a member of the firm of Shorey & Co. during the month of September at Norfolk, or Neligh ?
A. No, sir.
Q,. You bought goods for them both, didn’t you? ■ (Ob- ' jected to by defendants.
A. I did not.
Q. You selected goods at plaintiffs store in Omaha, and ordered them shipped to both stores, did you not?
A. No, sir, with one exception: I was at plaintiffs’ store
Q,. You bought goods for the firm at Neligh?
A. I did.
Q. You ordered all that they got from plaintiffs in this case?
A. No, sir.
Q. Do you know of their purchasing any themselves ?
A. I cannot swear that they did.
Q,. You visited Kirkendall, Jones & Co., in their store, on several occasions?
A. Yes, sir.
Q. You ordered goods shipped to Norfolk ?
A. No, sir, except the time stated.
Q. I will ask you to examine Exhibits A, B, and C, to the affidavit of Messrs. Kirkendall and Coe and state whether or not they are in your handwriting.
A. Yes, sir, they are.
Q. Who furnished the money that was put in this business here of Shorey & Co. ?
A. Shorey & Co. did.
Q. What individual furnished the money?
A. The individuals that formed the firm of Shorey & Co.
Q. Didn’t you put any money into that business ?
A. No, sir.
Q,. Do you know of any money being put into that firm by any one; and if so, how much and by whom?
Q,. I want an answer to my question; it is how much money, and by whom, do you know of having been put in that business of Shorey & Co.
A. I have answered, I think.
Q. You say you never put any money in the business?
A. I refer to the record.
■ Q. Do you now say you never put any money into that business ?
A. I do as a business.
Q,. Has any of your money been used in that business?
A. I decline to answer, or tell what I do' with my money.
(To all the above questions the objections of the defendants were overruled and exceptions taken.) Counsel for plaintiffs insisted on the witness being required to answer the last question.
By the Court : The witness need not answer unless he desires.
Q. Did you write the paper Exhibit No. 2?
A. It is my handwriting.
The main question presented by the record, and deemed important to consider is that upon the affidavit for attachment in the county court, and raised by defendants in their motion to discharge the attachment in said court.
It is fairly established, by the evidence, that the goods for which plaintiffs’ attachment was brought were sold to the firm or firms of Shorey & Co., of which H. A. Shorey who actually transacted the business of such purchase, represented his sons to be the active members, and himself a silent partner, or as “ standing behind them ” and worth $25,000. That H. A. Shorey was a partner, either active or silent, is manifest by his letters to the plaintiffs, subsequent to his purchases, and set forth in Exhibits A, B, and C. It also sufficiently appears that before the bills for the
The credit was given to H. A. Shorey on his representations “that the firm was composed of his boys; that they were good boys; had some money; that he himself was behind them and was worth $25,000.”
For the purposes of this case these representations must be taken as true, when made, and any change of the membership of such firm, before the satisfaction of the debts contracted on account of them, by means of which the whole of the goods passed to the possession of the firm of which the sons of H. A. Shorey were not members, and behind which he no longer stood as surety, must not only be held to be a sale of the goods, but, upon the evidence in the case, must be held to have been made “ with the fraudulent intent to defraud, hinder, and delay the creditors of the firm purchasing the goods,” and to that conclusion we all come after a thorough examination of the evidence presented.
The questions of practice arising in the record are somewhat complicated and doubtful, but their decision does not affect the main question in this case, and are not deemed important to the present consideration.
The judgment of the district court, adverse to that of the county court, is reversed, and the order, judgment, and ruling of the county court are restored and affirmed, and the attachment originally granted in the cause is restored, and all things reversed, dismissed, vacated, or discharged by the judgment of the district court are restored and affirmed
Reversed and remanded.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.