Alexander v. Clarkson

150 P. 576, 96 Kan. 174, 1915 Kan. LEXIS 340
Supreme Court of Kansas·Decided July 10, 1915·No. No. 19,555·Published·Cited by 10 cases

Opinion

The opinion of the court was delivered by

Porter, J.:

There are two actions involved in this appeal, one for an accounting between partners, which will be referred to as the. “partnership suit,” also an action brought by the First National Bank of Winfield against the same defendants upon two promissory notes, which action will be referred to as the “bank case,” and which is only indirectly involved herein. The partnership suit was commenced on June 30, 1904, and was pending in court for more than nine years. The case was referred to two different referees. The findings and report of the first referee were set aside by the court, and another referee appointed who heard the evidence, examined the accounts of the parties and reported his findings of fact and conclusions of law and recommended the kind of a final decree to be rendered. Both parties filed exceptions to the report, but these were overruled by the court and the referee’s report was confirmed in every particular and a final decree was rendered in accordance with his recommendation. Alexander, who is the plaintiff, appeals from the judgment.

The defendants are nephews of the plaintiff. From 1881 Mr. Alexander was engaged in the milling business in Winfield, originally with a partner named Kirk who was his brother-in-law. The business was conducted under the firm name of Kirk & Alexander, and after Kirk’s death his widow, Alexander’s sister, continued as the partner. Thereafter Mrs. Kirk died and Alexander, who was the executor of her estate, continued the business under the firm name of Kirk & Alexander. He became involved in financial difficulties in 1893, and a partnership arrangement was entered into between himself and his nephews which was still in existence when he brought the suit for accounting. For some reason which is not apparent counsel for the plaintiff devote a very large portion of their brief in an effort to show that no partnership was ever formed between the parties, and many pages of evidence are quoted to demonstrate the absurdity of Alexander giving to his nephews an interest in his business as partners. Alexander’s petition alleged a partnership and asked a partnership account[176] ing. At the trial of the case before the referee it was admitted that there was a partnership existing, but it was contended by Alexander that the terms of the partnership differed from those contended for by the defendants. The referee, upon all the testimony, found that a partnership existed, and that when the new firm began business in July, 1893, it took over from Kirk & Alexander accounts due the old firm, part of which were collected and a part of which were never collected; that Alexander retained the ownership of the mill property but furnished it free of charge to the firm and was to receive seven-twelfths of the net profits, John Clarkson three-twelfths, and M. A. Clarkson two-twelfths. Counsel for plaintiff make the further contention that if the findings of the referee and the approval of the court to the effect that there was a partnership be regarded as final this' court should weigh the evidence and find that Alexander’s contentions as to the terms of that partnership are correct and the findings of the referee and the court erroneous. But this court, of course, can not weigh conflicting evidence, and there is no merit in the contention. (Mason v. Harlow, 92 Kan. 3042, 142 Pac. 243.)' As stated, however, it was agreed by both parties at the hearing before the referee that a partnership was formed in July, 1893, and that it was a question for the referee and the court to determine what were the interests of the partners.

It appears that in 1898 defendant John Clarkson purchased what is known as the “Tunnel Mill” in Winfield, paying part of the consideration himself, the Alexander Milling Company paying the balance. The title to this property was' taken in his name, and the mill was operated from that time until 1902 under the name of the Clarkson Milling Company, but the business was kept on the books of the Alexander Milling Company. No separate books were opened and no separate bank account kept. Apparently the mills were operated under separate names in order to enable both to sell flour to merchants in the same town and to lead the public to understand that they were competitors in business. Against the' contention of John Clarkson the referee found that the Tunnel Mill property belonged to the partnership.

The business transactions of the partners covering the period of more than nine years became very much involved. [177] The personal funds and accounts of the members of the firm were apparently not kept separate from those of the partnership. It became necessary to consider a vast amount of evi-dence, including business transactions, book accounts, the indebtedness of the old firm of Alexander & Kirk, the assignment and transfer of numerous judgments rendered against some of the parties in other litigation, and it was a difficult matter for the referee and the court, out of the confusion of accounts, to determine what was a just accounting between the partners. The referee, however, made an accounting and recommended the dissolution of the partnership, and, as stated, the court approved the findings and conclusions of law. Eor reasons which will be suggested, we have deemed it necessary to refer to but a few of the findings and a portion of the evidence.

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Alexander v. Clarkson, 150 P. 576, 96 Kan. 174, 1915 Kan. LEXIS 340 (kan 1915).

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