Anderson v. Ackerman

88 Ind. 481
Indiana Supreme Court·Decided May 15, 1883·No. No. 9723·Published·Cited by 28 cases

Opinion

Howk, J.

— This suit was commenced by the appellee against the appellant and one Joseph Harris, in the Elkhart Circuit Court. Afterwards, upon the appellant’s application, the' venue of the cause was changed to the court below. There the death of the defendant Joseph Harris was suggested, and, after such suggestion, the record contains the following recital : “ Thereupon appears in open court the defendant John Anderson, and consents that the' administrator of Joseph Harris, deceased, need not be made a party, and that the trial shall proceed just as though he, the said administrator, was in court.”

The cause was put at issue and tried by the court; and, at the request of the parties, the court made a special finding of the facts and stated its conclusions of law thereon, in favor of appellee and against the appellant. Over the appellant’s motion for a new trial, and his exception to the court’s conclusion of law, the court rendered judgment thereon for the appellee, to which the appellant excepted.

The first error complained of in argument by the appellant’s counsel is the overruling of a demurrer, for the want of sufficient facts, to appellee’s complaint." In his complaint the appellee alleged in substance, that on the 14th day of Mai’ch,. 1876, he entered into an agreement of copartnership with the appellant and Joseph Hands; that prior to - that date appellant and Harris had entered into a written contract with John ~W. and Samuel Stettler, by the terms of which, in consideration that the Stettlers bound themselves to convey to appellant and Harris an undivided two-thirds interest in certain real estate, together with the easements and water rights thereto appurtenant, appellant and Harris covenanted and agreed to erect on such, real estate, and put in operation, a certain grist and flouring mill; that on the day aforesaid ap[483] pellee became a partner with the appellant and Harris in said enterprise, it being further agreed that when the mill was completed they would prosecute the milling business together; that by the terms of the partnership agreement each one was to furnish one-third of the cost of erecting the mill and making the improvements required by the contract, and contribute one-third of the expenses of conducting the business, and share the profits and losses equally; that the partnership continued under the firm name of Anderson, Harris & Co., until May 30th, 1877, when the firm was dissolved by the appellant selling his interest in the firm business, assets and property to the said Harris; that afterwards, on August 9th, 1877, the appellee and Harris purchased the interest of the Stettlers in said real estate and its appurtenances, and received from them a warranty deed therefor; and that afterwards, on October 15th, 1877, Harris having no interest in fact in such property, the appellee received from him a conveyance of his interest in the real estate, and the surrender of his interest in and the possession of the property, and the same was then owned by appellee in his own right, and the firm was dissolved.

The appellee further averred that the debts of the firm of' Anderson, Harris & Co. were all paid, and all the partnership assets which remained were the unsettled individual accounts of the partners; that, during the partnership of Anderson, Harris & Co., the appellee contributed in work and labor in the erection of the mill, and in produce and money in prosecuting the business and paying the firm debts, the sum of §12,856.56, a particular account of which was thereto attached, for which sum he was entitled to credit on partnership account; that appellee drew out of the firm the sum of §420.93, a particular account of which was thereto attached, with which sum he was properly chargeable on partnership account; that, during the continuance of the partnership business, the appellant contributed in'work and'labor and money the sum of §2,565.94, a particular account of which was thereto attached, for which sum he was entitled to credit on [484] ¿partnership account; and that he also drew out, and was prop'<erly chargeable on partnership account with, the sum of $128.77, a particular account- of which was thereto attached; and that the said Harris contributed, in work and money, the sum of $1,633.81, and drew out and was chargeable with the sum of $2,443.61, a particular account of which was thereto attached.

The appellee further alleged that there was due him from the appellant, on a final settlement of partnership accounts, the sum of $2,600, and from the said Harris the sum of $5,-<600, for which sums he held an equitable lien against the interest which each of the said partners had in the partnership property at the time of the dissolution of the firm of Anderson, Harris & Co.; that, on the — day of-, 187-, the said Harris executed to the appellant a mortgage on the undivided two-ninths of said real estate and its appurtenances, to secure an individual debt of Harris to appellant, which mortgage was duly recorded; but the appellee averred that the mortgage was subject to his equitable lien on such property to secure to him the payment of the sums so owing to him by the appellant and Harris;'that, on the —day of-, 187-, the appellant commenced suit in the Elkhart Circuit Court to foreclose his mortgage, to which suit the appellee was made a party; that, on issues duly made between the appellant and appellee, it was adjudged and decreed by the court that the appellee’s lien for any balance which might be found due him on the final settlement of their partnership accounts was a prior-lien to the lien of appellant’s mortgage, and such judgment and decree remained in full force, unreversed and unappealed from; that, at the date of such decree, the partnership business was not fully settled, the amount of such lien •could not be determined, and, by reason thereof, the amount of appellee’s lien was not. fixed in such decree; and that the partnership business had since been fully settled. ’Wherefore 'appellee prayed judgment against the appellant for $10,000, and against Harris for $10,000, and for a decree adjudging [485] that the amount of appellee’s Hen should be prior to the Hen of appellant’s mortgage, and for an order for the sale of the interest of the appellant and Harris in said real estate, and! for all other proper relief.

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Anderson v. Ackerman, 88 Ind. 481 (Ind. 1883).

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