Meggett v. Finney & Jones
Meggett v. Finney & Jones
Opinion of the Court
In this case there was evidence aliunde that a partnership had existed between the two defendants, and had been dissolved ; but of the plaintiff’s demand against the partners, there was no evidence whatsoever, besides the acknowledgment of Finney, made after the dissolution, but before the demand could have been barred by the statute of limitations, if its date be fixed according to the acknowledgment. The question submitted is, whether such an acknowledgment is admissible to establish the demand against both defendants; in effect, whether standing alone it can be allowed to suffice for this purpose.
As to the authority of one partner, after the dissolution, by
But the case before us is supposed to depend upon another class of cases, of which the leading one in England is Wood v. Braddick; and those in this country, most worthy of attention, are Hackley v. Patrick, Cady v. Shepherd; and our own cases of Veale v. Hassan & Archer, Kendrick v. Campbell & Clarke, aud Geddes v. Simpson & Morrison, The doctrine is, that as the rights and obligations of partners survive the dissolution, so must the power of each partner as to such rights and obligations: that the partnership is dissolved as to things future, but as to things past it continues and always must continue. These general propositions accompany and contain the admission that as to any transaction subsequent to the dissolution, there is no partnership, and of course no power of one partner to bind the other. They deduce the power of a partner after dissolution, from the necessity which grows out of the past matters, whose consequences survive
When we consider how often former partners become hos
The motion is granted.
Dissenting Opinion
dissenting. The copartnership of the defendants was proved before the acknowledgment by Finney was admitted in evidence — that fact was also admitted in the argument in this Court.
The case, then, presents the question, whether after the co-partnership of the defendants is proved by other evidence, the acknowledgment of one partner, after the dissolution of copartnership, that the plaintiff’s demand, which accrued during the partnership, was due and unpaid, is competent evidence to charge the other partner in a joint action against them.
In Geddes v. Simpson & Morrison the plaintiff produced a letter from one of the copartners, Simpson, acknowledging the receipt of an account current from the plaintiff, and that the balance was due to the plaintiff, as therein stated. To this evidence Morrison objected, that the letter was written after the dissolution, without his knowledge or consent. It was held by the whole Court, that the evidence was regular and proper. It was distinguished from a new contract made after the dissolution, as being only evidence of a contract made and due while the copartnership existed. Kendrick v, Campbell & Clarke was an action against the defendants as acceptors of a bill of exchange. The plaintiff offered in evidence a written admission by-Campbell, that the bill had been accepted by him, for the firm, in September, 1826 — but the admission being dated after the partnership was dissolved, it was objected that it was not competent evidence to. charge the other defendant, Clarke; and the objection was sustained. The plaintiff appealed. Some other points were discussed in the opinion of the Appeal Court, but a new trial was granted, expressly on the ground that the evidence had been improperly rejected.
The case of Geddes v. Simpson and Morrison is referred to, and said to have been followed in practice ever since.— The cases of Hackley v. Patrick and Walden v. Sherburne, are also referred to as having maintained that the admission of one partner, after the dissolution, was not admissible, even
Even if the case and dictum were entitled to more weight than they are, yet they must be .considered to have been overruled by the subsequent and well considered decisions in Bailey and Spears. In the case of the Executor of Fisher v. The Executor of Tucker, Judge Nott, after referring to some of the cases on the subject, and the diversity of opinion they manilest, declares the admissions of a partner, after dissolution, to be unquestionably sufficient to save a case from the operation of the statute of limitations, and in his opinion, admissible as to the existence of the debt, though not conclusive.
Since the leading case of Wood v. Braddick, the rule is well established in the English Courts. In that case Lord Mansfield says, “ clearly the admission of one partner, made after the partnership has ceased, is not evidence to charge the other in any transaction which has occurred since this separation ; but the power of partners with respect to rights created pending the partnership, remains after the dissolution.— Since it is clear that one partner can bind the other during all the partnership, on what principle is it that, from the moment when it is dissolved, his account of their joint contracts should cease to be evidence? and that those who are to-day as one person in interest, should to-morrow become entirely distinct in interest with regard to past transactions, which occurred while they were so united ?” Heath, J. says, “ is it not a very clear proposition, that when a paitnership is dissolved it is not dissolved with regard to things past, but only with regard to things future. With regard to things past, the partnership continues and always must continue.” In Hadenpyt v. Vingerhoct and another, Abbot, O. J. received the admission of one of the partners, after dissolution, that a note was subscribed by him, in the name of the firm, as sufficient evidence to support the action against both defendants. Lacy v. McNeil and Prichard v. Draper may also be cited, to show that Wood v. Braddick is recognized in the most recent decisions.
Why should a rule of evidence which is established by
The cases of Hackley v. Patrick and Walden v. Sherburn, established the rule which has ever since been observed in the Courts of New York, that one partner cannot, after dissolution, bind his copartner by acknowledging an account, any more than he can give a promissory note to bind him.— It is acknowledged by the Court in these cases, that they are in conflict with Wood and Braddick ; but they are said to introduce a safer rule. Professor Story, in his Treatise on Partnership, declares his approbation of the New York cases, while he admits that, in America, no small diversity of opinion has been expressed on the subject. He states the-whole ground of controversy to be, whether the acknowledgment is a mere continuation of the original promise, or whether it is a new contract or promise, springing out of and supported by the original consideration.
In the diversity of decisions, the cases in our own Court are not without support. Cady v. Shepherd was an action against Shepherd & Robbins as copartners. The contract was under seal, and signed by Shepherd in the absence of Robbins. The plaintiff offered parol evidence, to show a previous assent or ratification by Robbins — this was the first issue. To prove some of the issues relating to the performance of the contract, the plaintiff offered the written declarations of Shepherd, made after the dissolution of the partnership. Wilde, J. delivered the opinion of the Court. In answer to the objections against Shepherd’s declarations, the rule in Wood v. Braddick, which is quoted, is adjudged to have been correctly laid down, and said to have been frequently recognized with unqualified approbation, (citing Lacy v. McNeil and Gow on Partnership, which have been referred to in this dissent,) and is the settled law of England at the present, day, notwithstanding contradictory opinions which have prevailed in relation to the admissions of a partner as to debts barred by the statute of limitations. He ex
In Martin v. Root, Parker, C. J. says that the objection made to the admission offered, that it was made after the dissolution, could not prevail, because it was a confession of facts which took place before the dissolution ; and it may be doubted whether the joint interest is dissolved until the note was paid. Vinal v. Burrell and Bridge v. Gray are concurrent authorities wi'h Cady v. Shepherd. If, when it is said in Cady v. Shepherd that the declaration of one partner, after dissolution, respecting a partnership liability, may be evidence to charge the others, “ the joint contract being first proved aliunde,” it be intended to affirm any more than that the copartnership must be proved by other evidence than the admission of one of the partners, and be understood to qualify the rule so as to admit such declarations only after the plaintiff has first proved the copartnership, and the contract to which the admissions apply; it is clear that the reasoning is much larger than the conclusion, and breaks through the limitation which it is attempted to impose. In Wood v. Braddick, which is affirmed throughout the case, it was decided that the mutual agency of partners, respecting transactions which occurred during the partnership, continues after dissolution, the same as before dissolution ; and that, in effect, a partnership is not dissolved, as to copartnership affairs, until they are closed. Now, in all the diversity of decisions in America, it has not been ever held that, one partner cannot be bound by the admissions of another, made during the partnership, respecting a liability of the firm, unless the contract, the subject of the admission, be first proved aliunde.
Besides, reason is at fault in the practical application of the limitation. The partnership must, of course, be proved by other evidence than that of the copartner. The partnership
The restriction on .the competency of o.ne' partner’s admissions, after dissolution, to charge, the others, which requires that the joint contract should be first proved'aliunde, proceeds on a supposed conformity to the law which declares that, after dissolution^ one partner cannot create a' new -debt or liability which shall bind the others. This law cannot be denied; but it is misapplied when called in aid of the restiiction in question. It is assumed that if proof be made of the contract or of its existence by the admission of one of the partners, such admission creates a new liability ; but if the contract be proved aliunde, and' the liability of the defendants depends'on' the performance of the contract, proof of this issue, by the admission of one of the partners, after dissolution, that the plaintiff has performed his part, or that the defendants have not performed'their part, creates no new liability. This is a man fest confusion of ideas. The contract, with the liabilities it imposes on the contracting parties, is one thing, and the proof of the contract is another thing. Proof of the contract, by the admission of one of the partners, no more creates a new liability than proof of the same contract by
It is justly remarked by Shaw, C. J. in Cady v. Shepherd, that confusion has been introduced on this subject by the conflicting opinions which have prevailed in relation to the admissions of a partner as to debts barred by the statute of limitations. If the Courts in America were not distracted by the multifarious and conflicting decisions in the numerous Courts of the States, the rule in Wood v. Braddick would have prevailed in this country, with the same invariable consistency as it has governed the English Courts; and unless thejeports in other States be referred to only for instruction, and cease to be regarded as authority, the law must ever be as variable as the wind which fitfuly blows from them all.
On no subject has greater confusion and inconsistency prevailed in judicial opinions, than respecting the admissibility and effect of acknowledgments to take a case out of the statute of limitations. Until the case of Bell v. Morrison, the leading distinction between admissions of a debt, after and before it was barred, was imperfectly apprehended. That distinction, on the authority of Bell v. Morrison, was introduced into our Courts by the case of Young v. Monpoey.— It establishes that to except a case from the operation of the statute, when the debt is already barred, a new promise is necessary, either express, or implied from an unqualified admission of the debt. In such case, the admission by one partner cannot be received to charge the others, since the effect of it would bo to renew the obligation of a debt already extinct, and thereby create a new liability. There yet remains great diversity of opinion respecting the effect of an admission of a debt before the statutory bar is complete ; whether it operates to continue the existence of a subsisting liability, or as a new promise. In all our cases it is assumed that such admission operates to continue the original liability, and not to create a new one. In Bell v. Morrison, Judge Story maintains that such admission must operate as a new
Motion granted.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.