Babb v. Stewart

190 P.2d 872, 164 Kan. 512, 1948 Kan. LEXIS 251
CourtSupreme Court of Kansas
DecidedMarch 6, 1948
DocketNo. 37,044
StatusPublished
Cited by9 cases

This text of 190 P.2d 872 (Babb v. Stewart) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Babb v. Stewart, 190 P.2d 872, 164 Kan. 512, 1948 Kan. LEXIS 251 (kan 1948).

Opinion

[513]*513The opinion of the court was delivered by

Hoch, J.:

The appellee, Stanley G. Stewart, filed his petition in probate court for allowance of demand against the estate of William D. Pratt, deceased, then in process of administration. T. C. Babb, executor of the estate, demurred to part of the petition. The demurrer was sustained, and an appeal taken to the district court. The district court overruled the demurrer and remanded the case to the probate court. From that order this appeal was taken by the executor.

Appellant’s principal contentions are that facts alleged in the petition show a demand arising out of a partnership which existed for a period of more than twenty-seven years; that the probate court is without jurisdiction to entertain a demand arising out of a partnership or out of a “joint venture” as alleged in the petition, until there has been a final accounting and a balance found due out of the personal estate, and for the further reason that the claimant seeks determination of title to property; and that the petition does not initiate an action to secure a partnership accounting.

The petition may be briefly summarized. Petitioner asserted that he is a creditor of the Pratt estate in the amount of $86,000; that in May, 1918, he entered into a “joint venture” with Pratt, “in a project in the nature of contract operations or commissions from various business transactions in connection with the management and operation of a business of obtaining contracts for commissions, and of the purchase and sale of stock and securities of individuals and corporations throughout the, country and the financing of business enterprises and similar transactions”; that Pratt undertook to furnish the funds necessary for the “joint venture” and to devote a substantial part of his time thereto, and the petitioner agreed to devote his entire working time to the management and operation of the “joint venture” and to engage in no outside work without Pratt’s approval, or to make any investments requiring time and attention without Pratt’s consent; that the “joint venture” applied to all of Pratt’s net income “arising from contract operations or commissions paid him subsequent to January 1, 1918, and to certain contracts, negotiations on which were begun prior to January 1, 1918”; that the petitioner was to receive from such “joint venture” ten percent of Pratt’s net income from such contract operations subsequent to January 1, 1918, and from certain contracts and negotiations begun [514]*514prior to January 1, 1918; that the petitioner and Pratt operated the “joint venture” on these terms until July 1, 1931; that the “joint venture” was modified by mutual agreement about June 1; 1931; that under this modification it was agreed that each of them from time to time would purchase stocks or securities in their respective names, either from their personal funds or from funds borrowed for such purpose for the use and benefit of the “joint venture,” the purchaser of such stock or securities to be reimbursed for interest or commissions paid for the loans made for such purposes, to the end that neither party would purchase any stocks or securities without giving the other party the opportunity to refuse to participate therein; that various transactions were had in carrying on such “joint venture”; that subsequent to Pratt’s death, the petitioner first ascertained that the books concerning the “joint venture,” kept under Pratt’s supervision and control, contained numerous false items of expense; that items of expense set forth in the office expense statements — with the exception of rent, secretarial service, legal fees and expenses — -are either false or are fraudulent in that they represented expenditures foreign to the “joint venture”; that from January 1, 1932, up to the time of his death on October 9, 1945, Pratt charged items of expense to the “joint venture” in the total sum of $131,-669.27, and that of this amount the petitioner was charged $26,-333.43; that about November 1, 1944, petitioner‘requested a final accounting of the “joint venture” and with particular reference to specific items not necessary here to recount, and advised Pratt that he no longer desired to participate in the “joint venture” and that in consideration of his remaining in the “joint venture” Pratt promised to execute his last will and testament and therein to forgive all the expenses'charged to the petitioner in the “joint venture” as they appeared in the office expense statements'; that the petitioner fully performed under the agreement and continued to manage and operate the “joint venture” until Pratt’s death, but that Pratt failed to carry out his promise, and that the petitioner is entitled to have forgiven all such expenses appearing in the office account as of November 1, 1944. The prayer was for allowance of demand in the sum of $86,000 and for an order directing the executor to forgive all expenses charged to the petitioner as hereinbefore referred to.

The executor’s demurrer did not include the paragraphs of the petition relating to the request for a final accounting and discon[515]*515tinuance of the “joint venture” and the alleged promise of Pratt concerning his last will.

The appellant first contends that the facts alleged disclose a partnership, not simply a “joint venture”; that a “joint venture” is an arrangement limited in scope and duration, being ordinarily an agreement to engage in some specific venture for mutual benefit; that in this case the long period of time over which the transactions were conducted, the number of ventures involved, and the unrelated character of each to the others, negatived the existence of a “joint venture,” within the legal meaning of that term. The appellee, on the other hand, calls attention to the fact that the executor has not filed an inventory of any partnership property; that the claimant is not liquidating partnership affairs and does not have possession of partnership property; and contends further that the items included in the demand are either stated definitely as to amount, or the amounts are readily determinable by mathematical computation. It is true that the transactions alleged cover many years, and are rather involved in character. However, we are not called upon here to determine whether the transactions constituted merely a “joint venture” — the appellee being employed by Pratt, his services to be paid from profits accruing to Pratt — or whether the relationship was, strictly speaking, a partnership. In either event the petition was not demurrable.

G. S. 1947 Supp., 59-2239, provides:

“All demands, including demands of the state, against a decedent’s estate, whether due or to become due, whether absolute or contingent, including any demand arising from or out of any statutory liability of decedent or on account of or arising from any liability as surety, guarantor, or indemnitor, and including the individual demands of executors and administrators, not exhibited as required by this act within nine months after the date of the first published notice to creditors as herein provided, shall be forever barred from payment.” (Italics supplied.)

This section has been construed and applied in numerous cases since the adoption of the present probate code. All demands against an estate, whether absolute or contingent, whether based upon legal or equitable grounds, are barred unless filed in the probate court within the nine mdnths provided in the statute. (See Gantz v. Bondurant, 159 Kan. 389, 155 P. 2d 450, and many cases cited, p.

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Cite This Page — Counsel Stack

Bluebook (online)
190 P.2d 872, 164 Kan. 512, 1948 Kan. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/babb-v-stewart-kan-1948.