Miles v. Everson
Miles v. Everson
Opinion of the Court
Opinion,
Whatever might have been the effect of an unlimited covenant by Miles and Maccrum to pay the indebtedness of the Charlotte Furnace Company, it is manifest that their engagement by the contract in question in this cause was not of that character. The obligation of Miles and Maccrum in this regard is a part of the transfer by the other parties of their interest in the assets of the furnace company, and is introduced in the form of a condition, thus: “ Subject to the payment by said parties of the second part of the indebtedness of the Charlotte Furnace Company amounting to the sum of $73,385.66.” Upon the plain meaning of this language, the duty of Miles and Maccrum has been discharged when they have paid the indebtedness of the furnace company to the extent of $73,385.66.
It may be, and probably is the fact, that the liability to Kawlinson was overlooked and not thought of when the agreement was made, but that is of no consequence when considering the language of the written stipulation. It must be enforced by the courts according to the terms used by the parties. There is no ambiguity that needs explanation, and the words employed must receive their literal interpretation. This being so it follows that all the persons who were partners in the Charlotte Furnace Company when Rawlinson was injured, are alike liable according to the terms of their copartnership, and only the proportionate share which the defendant is liable for can be recovered from him. We decide nothing as to the propriety of the present form of action for that recovery, as that question is not before us.
Judgment reversed, and a venire facias de novo awarded.
Reference
- Full Case Name
- EDWIN MILES v. W. H. EVERSON
- Status
- Published
- Syllabus
- ‘(a) By the articles dissolving a partnership association, members retiring sold to the others the entire partnership property and. assets, the vendees covenanting to pay the “ indebtedness ” of the firm described as amounting to a certain sum, which indebtedness the vendees discharged. (b) Subsequently, a judgment was obtained against the partnership, in an action for negligence pending at the time of the dissolution, which - judgment was paid by the retiring members, on process issued, who then brought suit against the vendees for the amount thereof, upon their covenant in the articles of dissolution. 1. In such case, whether the enforced liability was within the term, indebtedness, or, whether it was overlooked when the articles were executed, the liability of the vendees upon their covenant was discharged on the payment by them of the amount of the indebtedness stated in the articles, and beyond that there was no undertaking. 2. The partners, as between themselves, being liable each to the others for a share of the enforced liability proportionate to his interest in the firm at the time it was incurred, the question whether such shares of the vendees were recoverable in this form of action, not being raised, is not decided.