Alaska Banking & Safe Deposit Co. v. Simmons

122 P. 319, 67 Wash. 673, 1912 Wash. LEXIS 1230
CourtWashington Supreme Court
DecidedMarch 28, 1912
DocketNo. 10044
StatusPublished
Cited by4 cases

This text of 122 P. 319 (Alaska Banking & Safe Deposit Co. v. Simmons) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Banking & Safe Deposit Co. v. Simmons, 122 P. 319, 67 Wash. 673, 1912 Wash. LEXIS 1230 (Wash. 1912).

Opinion

Parker, J.

This is an action to recover a balance due upon a promissory note, executed and delivered to the plaintiff, Alaska Banking & Safe Deposit Company, on September 5, 1907, by Irvine, Leslie & Co., a partnership, which the plaintiff alleges consisted of Richard Irvine, R. G. Leslie, and D. W. Simmons, at the time of the execution of the note. Nellie E. Simmons, the wife of D. W. Simmons, was made a defendant with a view to establishing the debt evidenced by the note as a community debt of Simmons and wife, as well [674]*674as a separate debt of the members of the partnership. A trial before the court without a jury resulted in findings and judgment against the partnership and its members, including D. W. Simmons, for the balance due upon the note, enforcible out of the separate and community property of D. W. Simmons. Simmons and wife have appealed. The rights of the other defendants are not here involved.

The contentions of Simmons and wife are, in substance, that the trial court erred in holding (1) that Simmons was a member of the partnership at the time of the execution of the note, and (2) in adjudging that the judgment should be enforcible out of the separate and community property of D. W. Simmons. The trial court decided against Simmons upon the question of his being a member of the partnership at the time of the execution of the note, upon the ground that he was then such member in fact; and also upon the ground that he was estopped from denying that fact by reason of his act and representations inducing respondent to so believe. Findings of fact Were made by the court amply supporting both of these grounds of its decision. The contentions of counsel for appellant upon this branch of the case involve almost wholly questions of fact. We will first notice the facts with a view to ascertaining whether or not the evidence warrants the conclusion that Simmons was a partner in fact. We may find that he was such, and thereby be relieved from noticing the question of estoppel.

The respondent is a banking corporation, maintaining a bank at Nome, Alaska. From the spring of 1903 until the fall of 1908, the firm of Irvine, Leslie & Company was engaged in the general merchandising business under that name, at Council City, in Alaska, which is about one hundred miles from Nome. During this period, the firm was a customer of respondent bank, both as a depositor and borrower. The firm was first organized, and a formal written copartnership agreement entered into the provisions of which, so far as we need notice them, are as follows:

[675]*675“Council City, Alaska, April 1st, 1903.
“Memorandum of agreement made and entered into by and between R. Irvine, R. G. Leslie and D. W. Simmons, all of Council City, Alaska, by'which the said parties agree to enter into a partnership for the purpose of conducting a general merchandise business in Council City, Alaska.
“The terms of said partnership shall exist for one year from date of agreement, unless mutually dissolved at an earlier date. The parties named herein agree to furnish sufficient capital as it may require to carry on said business, each individual shall furnish a like sum.
“The parties agree to carry on said business in the Simmons building situated between the Hub Saloon and the U. S. Marshall’s office, said building being the property of D. W. Simmons party herein, and same shall be used free of rent, it being understood and agreed, that said D. W. Simmons contributes said building free of charge to himself and partners, and they agree to give their services without remuneration, in the management of said business. . . .
“R. Irvine,
“D. W. Simmons,
“R. G. Leslie.”

Each of the partners, including Simmons, then paid into the capital stock of the firm $1,000, which is all that was ever actually contributed in money towards the capital of the firm by any of its members. In the fall of 1903, Simmons left Council City, intending to spend the winter in Seattle and elsewhere and return the following spring or summer. The partners realizing that he probably could not get back to Council City until after April 1st 1904, which would be the end of the partnership period according to the written agreement, it was agreed between the partners that the partnership should continue until his return. He returned to Council City about July 1st, 1904. He claims that soon thereafter the partnership was dissolved by mutual consent. He testifies that he could not then get his money out without crippling the business, and it was agreed between them that he should not take his money out until they suspended business, or for a period of time in any event. There is no .more [676]*676definite testimony than this as to how much he was to receive for his interest in the business, or as to when he should receive it, and it is conceded that he never received anything for his interest. He further testifies that it was then understood that the other partners were to have the continued use of his building for $50 per month. He admits, however, that none of this rent was ever paid to him. Irvine in his testimony denies that Simmons ever ceased to be a partner in the business. The testimony of other witnesses is conflicting upon this question. Their testimony consists largely of statements of mere conclusion, and is to a considerable extent hearsay. Such is the unsatisfactory condition of the evidence bearing directly upon the question of Simmons withdrawing from the partnership. Subsequent events, however, we think throw a great deal of light upon this question. In noticing these events, it will be well to keep in mind that all of the evidence which tends to show Simmons’ withdrawal from the partnership tends to show that such withdrawal occurred in the summer of 1904. It is not claimed to have occurred later than that, nor at any other time. Irvine testifies that Simmons “assisted in the business during the summers 1905 and 1906.” In 1905 Simmons signed a paper reading as follows:

“Council City, Oct. 7th, 1905.
“I, the undersigned, D. W. Simmons, a member of the firm of Irvine, Leslie & Company, do hereby agree to give my services free from June 1st, 1906, to Oct. 1st, 1906, or pay a man to take my place. D. W. Simmons.”

There is no direct evidence explaining the occasion of the signing of this paper, but its purpose was evidently to show some understanding between him and the other partners, and in any event seems to be a plain admission that he was then a partner. In the fall of 1906 the firm had become indebted to the National Grocery Company in a considerable sum. Simmons then went to Nome, where he met a Mr. Dunbar, a representative of that company. They then talked over [677]*677the conditions and prospects of the firm in connection with this indebtedness, and also the possibility of the firm procuring a loan from respondent bank. Simmons being not very well acquainted with the officers of the bank, and Dunbar being well acquainted with them, having had large business dealings with them, he agreed to speak to the bank officers in behalf of the firm with a view to the firm procuring a loan. Soon thereafter Simmons and Dunbar went to the bank together with a view to securing a loan for the firm of $7,000. Mr. Thatcher, the manager of the bank, testified as to what occurred on that occasion as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
122 P. 319, 67 Wash. 673, 1912 Wash. LEXIS 1230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-banking-safe-deposit-co-v-simmons-wash-1912.