Schlater v. Winpenny
Schlater v. Winpenny
Opinion of the Court
Opinion delivered March 2, 1874, by
There are three questions in this case :
1st. Whether the partnership of.F. Schlater & Co., expired on' the first of January or the 13th of February, 1869?
2d. If on the former day, whether the plaintiff below had notice of its dissolution?
3d. Whether John Clendenning was authorized to wind up the affairs and settle the business of the partnership after its dissolution?
I. The evidence shows that the plaintiff sold yarns after the first of January, 1869, to John Clendenning, who was authorized by power of attorney bearing date the 17th of January, 1868, “to buy and sell goods and merchandize,” for and in the name of the firm, and that the price of these yarns was included in the notes sued on. The plaintiff himself testified that “these notes were given for a balance of account and are renewals of others.” If, then, the partnership expired on the 1st of January, 1869, and the plaintiff had notice of its dissolution, it is clear that he is not entitled to recover that portion of the notes embracing the price of the yarns sold after that date, even if John Clendenning, by whom they were given, was authorized to settle the business of the partnership. It is, therefore, a material question, whether the partnership expired on the first of January, 1869, or was dissolved on the 13th of February thereafter.
Clendenning was examined as a witness for the plaintiff, and testified that the partnership continued until the 13th of February, 1869, and that it was then dissolved. On his cross-examination he said that he did not tell Benj. Rowland, Jr., that this firm expired January 1st, i860; and
II. If the defendant informed the plaintiff in January or February, 1868, that the partnership was for one year, and that it ended on the ist of January, 1869, then the latter had such notice of its dissolution as should have put him upon inquiry. He had no right to sell goods to Clendenning on the credit of the firm after that date without ascertaining that the partnership still continued.
III. The dissolution of the partnership, whether it terminated on ist of January or the 13th of February, 1869, undoubtedly operated as a revocation of the power of attorney authorizing Clendenning to conduct its business, and, unless he was authorized by the members of the firm to settle the business of the partnership after its dissolution, he had no authority to give the notes in controversy. On his cross-examination he said : “I exercised no powers except under the letter of attorney, which was for the business of F. Schlater & Co.but on his re-examination he said : “I had authority to wind up the affairs of the firm, after dissolution.” In saying this he may have supposed that under the power authorizing him to conduct the business of the firm he had authority to wind up and settle its affairs; or he may have so testified because he
The authority conferred by the power of attorney to conduct the business of the firm, as already suggested, ceased with the dissolution of the partnership, and if the plaintiff knew that the firm was dissolved when the notes were given, as it is manifest that he did, it was his business to see that Clendenning had authority to give them.
It needs no argument to show that the defendant was not bound by the entries made by Clendenning, or by his direction, in the partnership books after the dissolution of the firm; nor were they evidence against him, unless it was shown that he had assented to them.
Judgment reversed and a venire facias de novo awarded.
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- SCHLATER v. WINPENNY
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