Reitzel v. Whitaker
Reitzel v. Whitaker
Opinion of the Court
Opinion by
On 2d of January, 1894, defendant's delivered to plaintiff a due bill for 16,965.50, payable on demand with interest. On the 26th of March following, the partnership made a general assignment for the benefit of creditors; then plaintiff, averring liability of all the partners as general partners, brought this suit.
The substance of the certificate and affidavit to the renewal was, that the original $200,000 contributed by the special partners in December, 1891, remained unimpaired and undiminished in December, 1893 ; the plaintiff avers that this was false in fact, for at the latter date it had been consumed and lost, and the partnership was insolvent to the amount of many thousands of dollars. The defendant denies knowledge of this fact, but does not deny the fact; therefore, there was a false statement in the certificate of a most material fact. The act says : “ And if any false statement be made in such certificate or affidavit, all the persons interested in such partnership shall be liable for all engagements thereof, as general partners.”
The case is clearly against defendants. For the reasons given for the judgment in Fourth Street National Bank v. Whitaker, supra, we reverse this judgment, with directions to enter judgment against defendants, unless other legal or equitable causa be shown to the court below why judgment should not ba entered.
Reference
- Full Case Name
- Jane C. Reitzel v. William Whitaker and Richard W. Bacon
- Status
- Published
- Syllabus
- Partnership — Limited partnership under act of March 21, 1836. — Liability of special partner — Misstatement of capital.' A special partner in a limited partnership under the act of March 21, 1836, P. L. 113, is liable for the debts of the firm as a general partner, where a renewal certificate of the form filed in the recorder of deeds’ office falsely states that the capital is unimpaired, although the special partner has no knowledge that the certificate is false. It is his legal duty to know the truth or falsity of the certificate. Fourth Street N. Bank v. Whitaker, 170 Pa. 297, followed.