Anderson v. Brady

312 P.2d 37, 151 Cal. App. 2d 545, 1957 Cal. App. LEXIS 1793
CourtCalifornia Court of Appeal
DecidedJune 7, 1957
DocketCiv. No. 21936
StatusPublished
Cited by2 cases

This text of 312 P.2d 37 (Anderson v. Brady) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Brady, 312 P.2d 37, 151 Cal. App. 2d 545, 1957 Cal. App. LEXIS 1793 (Cal. Ct. App. 1957).

Opinions

WOOD (Parker), J.

The complaint alleged that plaintiff and the defendants Brady, Nossaman, and Paulston entered into an oral partnership agreement for the practice of law. Plaintiff sought an accounting and declaratory relief. Defendants denied generally and specifically the allegations of the complaint, except that plaintiff was an attorney at law; and defendants alleged that plaintiff and defendants were partners under certain conditions, restrictions, and limitations.

Defendants Brady and Nossaman filed a cross-complaint, alleging that plaintiff and defendants Brady and Nossaman entered into an oral partnership agreement under certain conditions, restrictions, and limitations; that plaintiff voluntarily withdrew from the partnership; that after such withdrawal plaintiff, while completing certain work pursuant to agreement, received money belonging to cross-complainants and used an office and facilities of cross-complainants. Cross-complainants sought an accounting and reasonable rental value of the office and facilities. Plaintiff, in his answer to the cross-complaint, offered to account for the money in connection with the final accounting in the partnership matter.

The judgment was that plaintiff take nothing by reason of the complaint, and that cross-complainants recover $8,359.91 upon the cross-complaint. Plaintiff appeals from the judgment.

Appellant contends (1) that the court erred in finding that plaintiff was not a partner; (2) the court erred in determining the amount due under the cross-complaint; and (3) the court abused its discretion in denying plaintiff’s motion to amend his “pleadings.”

For several years prior to December, 1942, Mr. Joseph D. Brady practiced law in Los Angeles, specializing in tax matters. In December, 1942, Mr. Brady and Mr. Walter L. [547]*547Nossaman formed a partnership to practice law under the firm name of Brady and Nossaman, and thereafter they practiced law as partners.

On January 1, 1943, Mr. John 0. Paulston, an attorney at law, was employed by the firm of Brady and Nossaman under an oral agreement that he would be paid a reasonable amount for his services, and that from time to time he would be paid such amounts as he would request and as would be approved by the firm, and that at the end of each fiscal year (which was November 30) Mr. Brady would review the services performed by Mr. Paulston during the year, and Mr. Brady would determine, with the approval of Mr. Nossaman, an additional amount that should be paid to Mr. Paulston for his services.

On December 15, 1943, Mr. Anderson, plaintiff herein, was employed by the firm under an oral agreement which was in substance the same as the agreement between Mr. Paulston and the firm.

Mr. Paulston and Mr. Anderson rendered services under the oral agreements. During each fiscal year, prior to January 1, 1947, and pursuant to the employment agreements, the firm paid Mr. Paulston and Mr. Anderson such amounts as they requested; and also at the end of each fiscal year Mr. Brady held a conference with each of them, reviewed each one’s services for the year and determined, with the approval of Mr. Nossaman, the additional amount that was to be paid to each one for that year.

About November 30, 1946, when Mr. Brady held the third year-end conference with Mr. Anderson, Mr. Brady gave Mr. Anderson his additional or augmentation check for that year. About that date there was a conversation between Mr. Brady and Mr. Anderson which allegedly constituted a partnership agreement.

Mr. Brady testified that on said November 30, 1946, or shortly thereafter, he told Mr. Anderson that he had talked to Mr. Nossaman about asking Mr. Anderson if he would like to become a partner of a very restricted type; that Mr. Anderson replied that “he would like to”; Mr. Brady told Mr. Anderson at that time that insofar as the financial arrangement that would exist in the future between him and Brady and Nossaman, that it would be exactly the same as it had been during the past three years.

Plaintiff took the deposition of Mr. Brady. Mr. Brady testified therein that in November, 1946, about the time he determined the additional amount that should be paid to Mr. Ander[548]*548son for that year, he told Mr. Anderson that he “had suggested to Walter [Mr. Nossaman] that both John Paulston and Stanley Anderson be told that if they wished to do so they could become—could be called partners within the restrictions set forth in our Answer.” He also testified therein that he thought he did not use the word “restrictions,” but he “told Mr. Anderson that as far as the financial arrangements between him and the firm of Brady & Nossaman, they would remain just as they had been in the past.” He also testified therein that he told Mr. Anderson that Mr. Nossaman and he liked Mr. Paulston and Mr. Anderson and they “thought his being called a partner would lend prestige to him in—in his relations with other lawyers and contemporaries at the bar and otherwise.”

Mr. Anderson testified that about November 25, 1946, he and Mr. Brady had a conversation in Mr. Brady’s office, and that “Mr. Brady said that Mr. Nossaman and he had decided or had come to the conclusion that it would be a good idea for Mr. Paulston and me to become members of the firm.”

About the same date (November 30, 1946) there was a simi-. lar conversation between Mr. Brady and Mr. Paulston.

The effective date of the alleged partnership agreements was January 1, 1947. Thereafter Mr. Anderson and Mr. Paulston rendered services in the same manner as they had rendered services theretofore. Also, they were compensated in the same manner as they had been compensated, except that in 1949 and thereafter Mr. Anderson was permitted to withdraw $1,000 a month. At the end of each fiscal year in 1947, 1948, and 1949, Mr. Brady held conferences with each of them, reviewed each one’s services for the year, and determined, with the approval of Mr. Nossaman, the additional amount to be paid to each one. At the end of the fiscal year in 1950, a conference was not held with Mr. Anderson regarding the additional amount to be paid to him, but a check for an additional amount of $4,000 was placed on Mr. Anderson’s desk. He accepted the check. At the end of the fiscal year in 1951, Mr. Brady held a conference with Mr. Anderson regarding the additional amount to be paid, and he determined, with the approval of Mr. Nossaman, that the additional amount should be $4,750 (making a total payment of $16,750 for that year). Mr. Anderson testified that he replied, in substance, that he thought the fees received by the firm in 1951 which were attributable to his services amounted to $43,000, and that the additional amount of $4,750 suggested by Mr. Brady was not [549]*549acceptable until lie had more data; that Mr. Brady replied that the fees totaling $43,000 were the result of services rendered by Mr. Anderson not only in 1951 but necessarily in prior years. On December 4, 1951, Mr. Anderson told Mr. Brady that he was withdrawing from the firm and that his withdrawal would be effective as of November 30, 1951 (the end of the fiscal year).

In January, 1952, Mr. Anderson accepted $5,000 (instead of $4,750) as the additional amount for 1951, without prejudice to his claim that the additional amount should be more.

After January 1, 1947 (the date of the alleged partnership agreement), Mr. Anderson was paid the following amounts: 1947—$14,000; 1948—$15,000; 1949—$15,000; 1950—$15,000; 1951—$17,000.

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Bluebook (online)
312 P.2d 37, 151 Cal. App. 2d 545, 1957 Cal. App. LEXIS 1793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-brady-calctapp-1957.